During 2020, Riverbed Co.s first year of operations, the company reports pretax financial income at $269,200. Riverbeds enacted tax rate is 45% for 2020 and 20% for all later years. Riverbed 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.

Exercise 19-16 During 2020, Riverbed Co.'s first year of operations, the company reports pretax financial income at $269,200. Riverbed's enacted tax rate is 45% for 2020 and 20% for all later years. Riverbed 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 2021 2022 2023 2024 2025 Total Future taxable (deductible) amounts: Installment sales $32,200 $32,200 $32,200 $96,600 Depreciation 6,200 6,200 6,200 $6,200 $6,200 31,000 Unearned rent (45,300) (45,300) (90,600) Your answer is partially correct. Try again. Complete the schedule below to compute deferred taxes at December 31, 2020. (Negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Deferred Tax Temporary Difference Future Taxable (Deductible) Amounts Tax Rate (Asset) Liability Installment sales $96,600 20% 19200 Depreciation 6200 31,000 (90,600) 20% 201% Unearned rent -18120 Totals -18120 25400 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. Compute taxable income for 2020. x Taxable income for 2020 232800 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. 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 tities and enter o for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense 112040 1 18120 T Deferred Tax Asset C 7 Deferred Tax Liability 7 Income Tax Payable 8120 I Deferred Tax Liability 2 25400 5400 | Income Tax Payable E 104760 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS