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Blue Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $ 820,000
Blue Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $ 820,000 $ 927,000 $ 912,000 Excess depreciation expense on tax return (28,700) ( 42,000) (9,700) Excess warranty expense in financial income 20.100 10,400 7,800 Taxable income $ 811,400 $ 895,400 $ 910,100 The income tax rate for all years is 20%. Your answer is partially correct. Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (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.) Account Titles and Explanation Debit Credit 2020 Income Tax Expense 32800 Deferred Tax Asset 11480 Income Tax Payable 327480 Deferred Tax Liability 12000 2021 Income Tax Expense 370800 Deferred Tax Asset 16800 Income Tax Payable 383440 Deferred Tax Liability 41460 2022 Income Tax Expense 364800 Deferred Tax Asset 3880 Income Tax Payable 365560 Deferred Tax Liability 3120 e Textbook and Media List of Accounts Your answer is partially correct. Indicate how deferred taxes will be reported on the 2022 balance sheet. Blue's product warranty is for 12 months. Blue Company Balance Sheet (Partial) December 31, 2022 Current Liabilities Deferred Tax Liability $ 2060 Prepare the income tax expense section of the income statement for 2022, beginning with the line Pretax financial income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Blue Company Income Statement (Partial) For the Year Ended December 31, 2022 Pretax Financial Income $ 912000 Income Tax Expense Current $ 364040 Deferred 760 364800 Net Income /(Loss) ta 546440
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