During 2020, Buffalo Co's first year of operations, the company reports pretax financial income at $234,100. Buffalo's enacted tax rate is 45% for 2020 and 20% for all later years. Buffalo expects to have taxable income in each of the next 5 years. The effects on future tax returns of temporary differences existing at December 31, 2020, are summarized as follows. Future Years 2023 2021 2022 2024 2025 Total Future taxable (deductible) amounts: Installment sales Depreciation Unearned rent $30,000 5,700 (51,600) $30,000 5,700 (51,600) $30,000 5,700 $5,700 $5,700 $90,000 28,500 (103,200) Complete the schedule below to compute deferred taxes at December 31, 2020. (Negativ preceding the number e.g. -45 or parentheses e.g. (45).) Temporary Difference Installment sales Future Taxable (Deductible) Amounts $90,000 Tax Rate % Depreciation 28,500 % Unearned rent (103,200) % Totals $ $ cember 31, 2020. (Negative amounts using either a negative sign Deferred Tax (Asset) Liability $ $ $ $ $ $ $ $ $ $ Compute taxable income for 2020. Taxable income for 2020 $ $ Prepare the journal entry to record income taxes payable, deferred taxes, and income tax expense for 2020. (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 O for the amounts.) Account Titles and Explanation Debit Credit During 2020, Buffalo Co's first year of operations, the company reports pretax financial income at $234,100. Buffalo's enacted tax rate is 45% for 2020 and 20% for all later years. Buffalo expects to have taxable income in each of the next 5 years. The effects on future tax returns of temporary differences existing at December 31, 2020, are summarized as follows. Future Years 2023 2021 2022 2024 2025 Total Future taxable (deductible) amounts: Installment sales Depreciation Unearned rent $30,000 5,700 (51,600) $30,000 5,700 (51,600) $30,000 5,700 $5,700 $5,700 $90,000 28,500 (103,200) Complete the schedule below to compute deferred taxes at December 31, 2020. (Negativ preceding the number e.g. -45 or parentheses e.g. (45).) Temporary Difference Installment sales Future Taxable (Deductible) Amounts $90,000 Tax Rate % Depreciation 28,500 % Unearned rent (103,200) % Totals $ $ cember 31, 2020. (Negative amounts using either a negative sign Deferred Tax (Asset) Liability $ $ $ $ $ $ $ $ $ $ Compute taxable income for 2020. Taxable income for 2020 $ $ Prepare the journal entry to record income taxes payable, deferred taxes, and income tax expense for 2020. (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 O for the amounts.) Account Titles and Explanation Debit Credit
