1.PREPARE THE JOURNAL ENTRY TO RECORD INCOME TAX EXPENSE DEFERRED INCOME TAXED AND PAYABLE FOR 2021

Your Answer Correct Answer (Used) Your answer is partially correct. Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2021. (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 for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense 38400 Deferred Tax Asset 10400 Income Tax Payable 57600 Deferred Tax Liability 28000 The following information is available for the first three years of operations for Sheridan Company: 1. Year 2020 Taxable income $460,000 310,000 360,000 2021 2022 2. On January 2, 2020, heavy equipment costing $560,000 was purchased. The equipment had a life of 5 years and no salvage value The straight-line method of depreciation is used for book purposes and the tax depreciation taken each year is listed below: Tax Depreciation 2023 2020 2021 2022 Total $184,800 $252,000 $84,000 $39.200 $560,000 3 On January 2, 2021. $288,000 was collected in advance for rental of a building for a three-year period. The entire $288.000 was reported as taxable income in 2021, but $192,000 of the $288,000 was reported as unearned revenue at December 31, 2021 for book purposes. The enacted tax rates are 20% for all years. 4. Prepare a schedule comparing depreciation for financial reporting and tax purposes. (Enter negative amounts using either ar sign preceding the number eg -45 or parentheses eg. (45)) Depreciation for Financial Reporting Year Depreciation for Tax Purposes Temporary Difference 2020 $ 112000 184800 $ -72800 2021 112000 252000 -140000 2022 112000 84000 28000 2023 112000 39200 72800 2024 112000 0 112000 560000 560000 0 Determine the deterred tax asset or liability at the end of 2020. Deferred tax liability $ 14560 e Textbook and Media List of Accounts Attempts: 2 of 10 sec Using multiple attempts will impact your score. 10% score reduction after attempt 4 (c) Your answer is correct Prepare a schedule of future taxable and (deductible) amounts at the end of 2021. (Enter negative amounts using either a negative sien preceding the number es.-45 or parentheses eg. (451) 2022 2023 2024 Future taxable (deductible) amounts: Depreciation 28000 $ 72800 Rent -96000 -96000 preceding the number eg.-45 or parentheses es.(451) Deferred Tax Temporary Difference Future Taxable (Deductible) Amounts Tax Rate (Asset) Depreciation $ 212,800 20 % $ Rent 192,000 20 % -38,400 Totals $ 20,800 38.400 $ (e) e Your Answer Correct Answer (Used) Compute the net deferred tax expense (benefit) for 2021. (Enter negative amount using either a negative sign preceding the number e45 or parentheses eg: (45 Net deferred tax (benet) for 2021 $ -10.400