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Everything is correct except for the Deferred Tax Liability amount. I also tried submitting the answer without parenthesis and it was still incorrect. Please help
Everything is correct except for the Deferred Tax Liability amount. I also tried submitting the answer without parenthesis and it was still incorrect. Please help
Question 5 0.92/1 View Policies Show Attempt History Current Attempt in Progress Vaughn Company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 $799,000 $944,000 $951,000 Pretax financial income (10,200) Excess depreciation expense on tax return (29,100) (39,300) Excess warranty expense in financial income 19,500 9,800 8,100 $789,400 $914,500 $948,900 Taxable income The income tax rate for all years is 40%. Your answer is correct. Assuming there were no temporary differences prior to 2017, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. (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 2017 Income Tax Expense 319,600 Deferred Tax Asset 7,800 Income Tax Payable 315,760 Deferred Tax Liability 11,640 2018 377,600 Income Tax Expense Deferred Tax Asset 3,920 Income Tax Payable 365,800 Deferred Tax Liability 15,720 2019 Income Tax Expense 380,400 3,240 Deferred Tax Asset Income Tax Payable 379,560 Deferred Tax Liability 4,080 Your answer is partially correct. Indicate how deferred taxes will be reported on the 2019 balance sheet. Vaughn's product warranty is for 12 months. Vaughn Company Balance Sheet December 31, 2019 Non-current Liabilities Deferred Tax Liability (31,440) List of Accounts eTextbook and MediaStep by Step Solution
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