C. Question 2 10 pts On December 31, 2019. the Irwin Company's accounting records show an unadjusted $60,000 credit balance in the Deferred Income Tax Liability account. The balance is related to the $150,000 difference between the December 31, 2018 recorded values of certain assets for book and income tax purposes. The company uses the straight-line depreciation method for financial statement purposes and accelerated methods for income tax purposes. The following additional information is available Book Basis Income Tax Basis December 31, 2018 Assets 5 900.000 $750,000 December 31, 2019 Assets $1,000,000 $885.000 2019 Pretax accounting income $450,000 2019 Taxable income $485.000 The $115.000 difference between the book and income tax bases of the assets at December 31, 2019 is co to a combination of the depreciation methods and the company's equipment acquisitions and retirements. The $35.000 difference between the 2017 pretax accounting and taxable incomes is due to this one temporary difference and various permanent differences. The 2019 corporate tax rate 40% however, the enacted corporate tax rate will be 45% effective January 1, 2020 and is not expected to change in the foreseeable future REQUIRED: Prepare the necessary Journal entry to record the 2019 income tax expense and to dust the deferred income tax account Use the table tormat option in the answer space td add an tlement of structure to your answet. For example, Account debited 555555 Account created $$$$$ B/ UA. IE ** XE 1110 Paragraph MacBook Pro % 5 & 7 2 3 4 6 8 9 a C. Question 2 10 pts On December 31, 2019. the Irwin Company's accounting records show an unadjusted $60,000 credit balance in the Deferred Income Tax Liability account. The balance is related to the $150,000 difference between the December 31, 2018 recorded values of certain assets for book and income tax purposes. The company uses the straight-line depreciation method for financial statement purposes and accelerated methods for income tax purposes. The following additional information is available Book Basis Income Tax Basis December 31, 2018 Assets 5 900.000 $750,000 December 31, 2019 Assets $1,000,000 $885.000 2019 Pretax accounting income $450,000 2019 Taxable income $485.000 The $115.000 difference between the book and income tax bases of the assets at December 31, 2019 is co to a combination of the depreciation methods and the company's equipment acquisitions and retirements. The $35.000 difference between the 2017 pretax accounting and taxable incomes is due to this one temporary difference and various permanent differences. The 2019 corporate tax rate 40% however, the enacted corporate tax rate will be 45% effective January 1, 2020 and is not expected to change in the foreseeable future REQUIRED: Prepare the necessary Journal entry to record the 2019 income tax expense and to dust the deferred income tax account Use the table tormat option in the answer space td add an tlement of structure to your answet. For example, Account debited 555555 Account created $$$$$ B/ UA. IE ** XE 1110 Paragraph MacBook Pro % 5 & 7 2 3 4 6 8 9 a
