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Instructions (a) Prepare a schedule comparing depreciation for financial reporting and tax purposes. (b) Determine the deferred tax (asset) or liability at the end of
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(a) Prepare a schedule comparing depreciation for financial reporting and tax purposes.
(b) Determine the deferred tax (asset) or liability at the end of 2020.
(c) Prepare a schedule of future taxable and (deductible) amounts at the end of 2021.
(d) Prepare a schedule of the deferred tax (asset) and liability at the end of 2021.
(e) Compute the net deferred tax expense (benefit) for 2021.
(f) Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2021.
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