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Ivanhoe Company has the following two temporary differences between its income tax expense and income taxes payable Ivanhoe Company has the following two temporary differences
Ivanhoe Company has the following two temporary differences between its income tax expense and income taxes payable
Ivanhoe Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $903,000 $801,000 $ (28,800) $937,000 140,000 Excess depreciation expense on tax return (10,300] Excess warranty expense in financial income 20,800 9.600 7,900 Taxable income $793,000 $906.600 $900,600 The income tax rate for all years is 20% a) Your answer is correct. Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (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 for the amounts.) Account Titles and Explanation Debit Credit 2020 Income Tax Expense 160200 Deferred Tax Asset 4160 Deferred Tax Liability 5760 Income Tax Payable 158600 2021 Income Tax Expense 187400 Deferred Tax Asset 1920 Income Tax Payable 181320 Deferred Tax Liability B000 2022 Income Tax Expense 180600 Deferred Tax Asset 1580 Deferred Tax Llability 2000 Income Tax Payable 180120 Attempts: 1 of 3 used (b) - Your answer is partially correct. Indicate how deferred taces will be reported on the 2022 balance sheet. Ivanhoe's product warranty is for 12 months. Ivanhoe Company Balance Sheet (Partial) December 31, 2022 Noncurrent Liabilities Deferred Tax Liability 480 Save for Later Attempts 2 of 3 used SubmitStep by Step Solution
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