Blue Spruce Corporation recorded warranty accruals as at December 31, 2020 in the amount of $154,800. This reversing difference will cause deductible amounts of $50,700 in 2021, $38,200 in 2022, and $65,900 in 2023. Blue Spruces accounting income for 2020 is $140,000 and the tax rate is 25% for all years. There are no deferred tax accounts at the beginning of 2020.

Calculate the deferred tax balance at December 31, 2020.

Deferred tax Choose the answer from the menu in accordance to the question statement

$Enter your answer in accordance to the question statement

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Calculate taxable income and current income tax payable for 2020.

Taxable income $

Income tax payable $

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Prepare the journal entries to record income taxes for 2020. (Credit account titles are automatically indented when the 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.)

Year

Account Titles and Explanation

Debit

Credit

2020

(To record current tax expense)

2020

(To record deferred tax benefit)

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

Blue Spruce Inc.

(Partial) Income Statement

$

$

$

Blue Spruce Corporation recorded arany acous December 31, 2020 in the amount of $154.000. This meg derece delicte amo 0.00 0.00 din 2001. accounting income for 2020 is $140,000 and the taxis 29 for all years. There are the being of 2020. Calculate the deferred to balance at December 21, 2020 Deferred tax SHOW LIST OF ACCOUNT LIETOTNE NETOTEN LIETTE Calculate the income and current income tax for 2020 Taxable income Income tax payable INTOFAUT CINK TO TO Prepare the foumanities to record income was for 2000 Corredamy w stanie tilanner for the Year Account Titles and patio Debit Credit To tardcore NO Year Account Titles and Explanation Debit Credit 2020 (To record current tax expense) 2020 (To record deferred tax benefit) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LI TO TEXT Prepare the income tax expense section of the income statement for 2020. beginning with the line Income before income tax. Blue Spruce Inc. (Partial) Income Statement WOWICE