Question
Having trouble with the question below: Tax related data for Accounting Corporationis as follows:Accounting Corp. had excess CCA over depreciation in 2018 that will reverse
Having trouble with the question below:
Tax related data for Accounting Corporationis as follows:Accounting Corp. had excess CCA over depreciation in 2018 that will reverse and cause taxable amounts of $20,000 in 2019, $25,000 in 2020, and $35,000 in 2021. Rent collected in advance and included in taxable income in 2018 totaled $100,000 for a four-year period. Of this amount, $75,000 was reported for unearned purposes.Intermediate's accounting income for 2018 is $200,000 and the tax rate is 25% for all years. There are no deferred tax accounts at the beginning of the year.
Required:a) Prepare schedule of future taxable and deductible amounts.
b) Prepare schedule of any deferred tax asset and/or deferred tax liability.
c) Prepare the adjusting journal entries to record income tax expense, deferred taxes, and income taxespayable for 2018 and the entry for 2019 related to the future/deferred tax amounts
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