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Exercise 19-8 Kingbird Company has the following two temporary differences between its income tax expense and income taxes payable 2017 2018 2019 Pretax financial income
Exercise 19-8 Kingbird Company has the following two temporary differences between its income tax expense and income taxes payable 2017 2018 2019 Pretax financial income Excess depreciation Excess warranty expense in financial income Taxable income $801,000 $937,000 $903,000 expense on tax return (28,800 (40,000) (10,300) 9,600 20,800 7,900 $793,000 $906,600 $900,600 The income tax rate for all years is 40%. 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 tities and enter 0 for the amounts.) Account Titles and Explanation Debit Credit 2012 2018 2019 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Indicate how deferred taxes will be reported on the 2019 balance sheet. Kingbird's product warranty is for 12 months. Kingbird Compan Balance Sheet SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare the income tax expense section of the income statement for 2019, beginning with the line "Pretax financial income. (Enter loss using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Kingbird Company Income Statement (Partial) Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Question Attempts: 0 of 15 used SAVE FOR LATER
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