E19.1 (LO1,2) (One temporary difference, Future Taxable Amounts, One Rate, No Beginning Differed Taxes) South Carolina Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable amounts of $55,000 in 2021, $60,000 in 2022, and $65,000 in 2023. South Carolinas pretax financial income for 2020 is $300,000, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2020.

Instructions

1. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020 (Please explain how this is found? I'm completely lost on this)