Question
At the end of 2019, Tamarisk Company has $175,600 of cumulative temporary differences that will result in reporting the following future taxable amounts. 2020 2021
At the end of 2019, Tamarisk Company has $175,600 of cumulative temporary differences that will result in reporting the following future taxable amounts.
2020
2021
2022
2023
$57,600
47,600
41,300
29,100
$175,600
Tax rates enacted as of the beginning of 2018 are:
2018 and 2019
2020 and 20
2022 and later
40 %
30 %
25 %
Tamarisk's taxable income for 2019 is $334,500. Taxable income is expected in all future years.
(a) Prepare the journal entry for Tamarisk to record income taxes payable, deferred income taxes, and income tax expense for 2019, assuming that there were no deferred taxes at the end of 2018.
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Financial and Managerial Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
11th Edition
9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895
