Question

Vaughn Corporation began 2020 with a $49,680 balance in the Deferred Tax Liability account. At the...

Vaughn Corporation began 2020 with a $49,680 balance in the Deferred Tax Liability account. At the end of 2020, the related cumulative temporary difference amounts to $378,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $567,000, the tax rate for all years is 20%, and taxable income for 2020 is $437,400.

Compute income taxes payable for 2020.

Income taxes payable

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.

Prepare the income tax expense section of the income statement for 2020 beginning with the line “Income before income taxes.”.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Blue Corporation began 2020 with a $56,120 balance in the Deferred Tax Liability account. At the...
Blue Corporation began 2020 with a $56,120 balance in the Deferred Tax Liability account. At the end of 2020, the related cumulative temporary difference amounts to $427,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $640,500, the tax rate for all years is 20%, and taxable income for 2020 is $494,100. Compute income taxes payable for 2020. Income taxes payable $enter Income taxes payable in dollars SHOW LIST OF ACCOUNTS Prepare the...
Teal Corporation began 2017 with a $45,000 balance in the Deferred Tax Liability account. At the...
Teal Corporation began 2017 with a $45,000 balance in the Deferred Tax Liability account. At the end of 2017, the related cumulativetemporary difference amounts to $174,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2017 is $354,000, the tax rate for all years is 40%, and taxable income for 2017 is $318,000. A :Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017. (Credit account titles...
Oriole Corporation began 2020 with a $54,280 balance in the Deferred Tax Liability account. At the...
Oriole Corporation began 2020 with a $54,280 balance in the Deferred Tax Liability account. At the end of 2020, the related cumulative temporary difference amounts to $413,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $619,500, the tax rate for all years is 20%, and taxable income for 2020 is $477,900. Compute income taxes payable for 2020. Income taxes payable $enter Income taxes payable in dollars Prepare the journal entry to record...
The following facts relate to Blossom Corporation. 1. Deferred tax liability, January 1, 2020, $21,000. 2....
The following facts relate to Blossom Corporation. 1. Deferred tax liability, January 1, 2020, $21,000. 2. Deferred tax asset, January 1, 2020, $0. 3. Taxable income for 2020, $99,750. 4. Pretax financial income for 2020, $210,000. 5. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $252,000. 6. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $36,750. 7. Tax rate for all years, 20%. 8. The company is expected to operate...
Sheffield Corporation began 2017 with a $98,000 balance in the Deferred Tax Liability account. At the...
Sheffield Corporation began 2017 with a $98,000 balance in the Deferred Tax Liability account. At the end of 2017, the related cumulative temporary difference amounts to $324,200, and it will reverse evenly over the next 2 years. Pretax accounting income for 2017 is $493,800, the tax rate for all years is 40%, and taxable income for 2017 is $414,600. Compute income taxes payable for 2017. Income taxes payable $ Prepare the journal entry to record income tax expense, deferred income...
Exercise 19-05 The following facts relate to Pearl Corporation. 1. Deferred tax liability, January 1, 2020,...
Exercise 19-05 The following facts relate to Pearl Corporation. 1. Deferred tax liability, January 1, 2020, $21,600. 2. Deferred tax asset, January 1, 2020, $0. 3. Taxable income for 2020, $102,600. 4. Pretax financial income for 2020, $216,000. 5. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $259,200. 6. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $37,800. 7. Tax rate for all years, 20%. 8. The company is expected...
Headland Corporation began operations in 2020 and reported pretax financial income of $230,000 for the year....
Headland Corporation began operations in 2020 and reported pretax financial income of $230,000 for the year. Headland’s tax depreciation exceeded its book depreciation by $40,000. Headland’s tax rate for 2020 and years thereafter is 30%. Assume this is the only difference between Headland’s pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (Credit account titles are automatically indented when amount is entered. Do not indent manually....
Shamrock Corporation has one temporary difference at the end of 2020 that will reverse and cause...
Shamrock Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable amounts of $54,300 in 2021, $59,600 in 2022, and $64,900 in 2023. Shamrock’s pretax financial income for 2020 is $327,400, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2020. Compute taxable income and income taxes payable for 2020. Taxable income $enter a dollar amount Income taxes payable $ Prepare the journal entry to...
The following facts relate to Sweet Corporation. A. Deferred tax liability, January 1, 2017, $67,200. B....
The following facts relate to Sweet Corporation. A. Deferred tax liability, January 1, 2017, $67,200. B. Deferred tax asset, January 1, 2017, $22,400. C. Taxable income for 2017, $117,600. D. Cumulative temporary difference at December 31, 2017, giving rise to future taxable amounts, $257,600. E. Cumulative temporary difference at December 31, 2017, giving rise to future deductible amounts, $106,400. F. Tax rate for all years, 40%. No permanent differences exist. G. The company is expected to operate profitably in the...
Sheridan Corporation has one temporary difference at the end of 2020 that will reverse and cause...
Sheridan Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable amounts of $57,000 in 2021, $61,800 in 2022, and $67,300 in 2023. Sheridan’s pretax financial income for 2020 is $286,600, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2020. Compute taxable income and income taxes payable for 2020. Taxable income $enter a dollar amount Income taxes payable $enter a dollar amount Prepare the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT