Brief Exercise 19-03

Pearl Corporation began operations in 2020 and reported pretax financial income of $212,000 for the year. Pearls tax depreciation exceeded its book depreciation by $33,000. Pearls tax rate for 2020 and years thereafter is 30%. Assume this is the only difference between Pearls pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (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
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

Show how the deferred tax liability will be classified on the December 31, 2020, balance sheet.

Deferred tax liability should be classified as a select a balance sheet section

current assetcurrent liabilitynoncurrent assetnoncurrent liability

on the December 31, 2020, balance sheet.