Question

2. Munoz Corp.'s books showed pretax financial income of $3,600,000 for the year ended December 31, 2021. In the computation of federal income taxes, the following data were considered: Gain on an involuntary conversion $1,560,000 (Munoz has elected to replace the property within the statutory period using total proceeds.) Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes 240,000 Federal estimated tax payments, 2021 200,000 Enacted federal tax rate, 2021 20%

Prepare the accounting entry for taxes on Munoz Corp’s Books for 2021.

Answer 1

According to given data ,Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes 240,000 Federal estimated tax payments, 2021 200,000 Enacted federal tax rate, 2021 20% and lets Prepare the accounting entry for taxes on Munoz Corp’s Books for 2021.

main resourcers	$
short term differences
profit on reflex change not taxable in present year	$       1,560,000
Depreciation too much demand	$          240,000
whole Deferred liability	$       1,800,000
furthur enacted tax rate	20%
Deferred tax liability	$          360,000

Date	Resources	Dt $	Ct $
	Income tax expense	$560,000
	Deferred tax liability		$360,000
	Income tax payment		$2000,000