Zekany Corporation would have had identical income before taxes on both its income tax returns and incomestatements for the years 2021 through 2024 except for differences in depreciation on an operational asset. The assetcost $110,000 and is depreciated for income tax purposes in the following amounts:2021$36,3002022 48,4002023 16,5002024 8,800The operational asset has a four-year life and no residual value. The straight-line method is used for financial reportingpurposes.Income amounts before depreciation expense and income taxes for each of the four years were as follows:2021202220232024Accounting income before taxesand depreciation$70,000 $90,000 $80,000 $80,000Assume the income tax rate for 2021 and 2022 was 30%; however, during 2022, tax legislation was passed to raise thetax rate to 40% beginning in 2023. The 40% rate remained in effect through the years 2023 and 2024. Both theaccounting and income tax periods end December 31.Required:Prepare the journal entries to record income taxes for the years 2021 through 2024. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.) 1 Record 2021 income taxes.2 Record 2022 income taxes.3 Record 2023 income taxes.4 Record 2024 income taxes.

Introduction Income tax: Income tax is paid by companies on the net income earned before tax in…

Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2021 through 2024 except for differences in depreciation on an operational asset. The asset cost $110,000 and is depreciated for income tax purposes in the following amounts: 2021$36,300 2022 48,400 2023 16,500 2024 8,800 The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes. Income amounts before depreciation expense and income taxes for each of the four years were as follows: 2021 2022 2023 2024 Accounting income before taxes $70,000 $90,000 $80,000 $80,000 and depreciation Assume the income tax rate for 2021 and 2022 was 30%; however, during 2022, tax legislation was passed to raise the tax rate to 40% beginning in 2023. The 40% rate remained in effect through the years 2023 and 2024. Both the accounting and income tax periods end December 31. Required: Prepare the journal entries to record income taxes for the years 2021 through 2024. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2021 through 2024 except for differences in depreciation on an operational asset. The asset cost $110,000 and is depreciated for income tax purposes in the following amounts: 2021$36,300 2022 48,400 2023 16,500 2024 8,800 The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes. Income amounts before depreciation expense and income taxes for each of the four years were as follows: 2021 2022 2023 2024 Accounting income before taxes $70,000 $90,000 $80,000 $80,000 and depreciation Assume the income tax rate for 2021 and 2022 was 30%; however, during 2022, tax legislation was passed to raise the tax rate to 40% beginning in 2023. The 40% rate remained in effect through the years 2023 and 2024. Both the accounting and income tax periods end December 31. Required: Prepare the journal entries to record income taxes for the years 2021 through 2024. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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