Carla Corporation reports pretax financial income of $262,600 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Rental income on the income statement is less than rent callected on the tax return by $62,300. 2. Depreciation on the tax return is greater than depreciation on the income statement by $43,200. 3. Interest on an investment in a municipal bond of $5,900 on the income statement. Carla' tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. (a) Your answer has been saved. See score details after the due date. Compute taxable income and income taxes payable for 2020. Taxable income 275,800 Income taxes payable 82,740 Attempts: 1 of 1 used (b) Your answer has been saved. See score details after the due date. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manuallx If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense 77,010 Deferred Tax Asset 18,690 Income Tax Payable 82,740 Deferred Tax Llability 12,960
Carla Corporation reports pretax financial income of $262,600 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Rental income on the income statement is less than rent callected on the tax return by $62,300. 2. Depreciation on the tax return is greater than depreciation on the income statement by $43,200. 3. Interest on an investment in a municipal bond of $5,900 on the income statement. Carla' tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. (a) Your answer has been saved. See score details after the due date. Compute taxable income and income taxes payable for 2020. Taxable income 275,800 Income taxes payable 82,740 Attempts: 1 of 1 used (b) Your answer has been saved. See score details after the due date. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manuallx If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense 77,010 Deferred Tax Asset 18,690 Income Tax Payable 82,740 Deferred Tax Llability 12,960
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 14P
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