Ivanhoe Company purchased equipment for $180,000 on January 2, 2020, its first day of operations. For...
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Ivanhoe Company purchased equipment for $180,000 on January 2, 2020, its first day of operations. For book purposes, the equipment will be depreciated using the straight-line method over three years with no salvage value. Pretax financial income and taxable income are as follows: 2020 2021 2022 Pretax financial income $202,600 $253,000 $293,000 Taxable income 187,000 253,000 308,600 The temporary difference between pretax financial income and taxable income is due to the use of accelerated depreciation for tax purposes. Prepare the journal entries to record income taxes for all three years (expense, deferrals, and liabilities) assuming that the enacted tax rate applicable to all three years is 20%. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Debit Date Account Titles and Explanation 2020 2021 2022 Credit SHOW LIST OF ACCOUNTS Prepare the journal entries to record income taxes for all three years (expense, deferrals, and liabilities) assuming that the enacted tax rate as ou 20% but that in the middle of 2021, Congress raises the income tax rate to 25% retroactive to the beginning of 2021. (Credit account titles ar automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account and enter 0 for the amounts.) Date Account Titles and Explanation 2020 2021 2022 Debit Credit Sy Policy I 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc Ivanhoe Company purchased equipment for $180,000 on January 2, 2020, its first day of operations. For book purposes, the equipment will be depreciated using the straight-line method over three years with no salvage value. Pretax financial income and taxable income are as follows: 2020 2021 2022 Pretax financial income $202,600 $253,000 $293,000 Taxable income 187,000 253,000 308,600 The temporary difference between pretax financial income and taxable income is due to the use of accelerated depreciation for tax purposes. Prepare the journal entries to record income taxes for all three years (expense, deferrals, and liabilities) assuming that the enacted tax rate applicable to all three years is 20%. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Debit Date Account Titles and Explanation 2020 2021 2022 Credit SHOW LIST OF ACCOUNTS Prepare the journal entries to record income taxes for all three years (expense, deferrals, and liabilities) assuming that the enacted tax rate as ou 20% but that in the middle of 2021, Congress raises the income tax rate to 25% retroactive to the beginning of 2021. (Credit account titles ar automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account and enter 0 for the amounts.) Date Account Titles and Explanation 2020 2021 2022 Debit Credit Sy Policy I 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc
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Answer rating: 100% (QA)
2020 2021 2022 Book Depreciation 60000 60000 60000 Tax Depreciation 75600 60000 44400 Temporary D... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
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