Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
odding Recording Multiple Temporary Differences The records of Anderson Inc. provide the following formation for the tax year 2020 . There was no beginning balance
odding Recording Multiple Temporary Differences The records of Anderson Inc. provide the following formation for the tax year 2020 . There was no beginning balance in deferred tax accounts Taxable income for 2020 was 560.000 Tax rate 29 Three temporary differences were identified Estimated litigation acoual of $20.000 not deductible for tax purposes. Settlement not expected to take place until 2022. Excess of accelerated depreciation over GAAP depreciation of $12.000 caused a difference in the $90.000 GAAP basis and the $30,000 tax basis of equipment. One-third of the difference will reverse in 2021 arealzed holding gain oneguilty securities of $3.500 not recognized for tax purposes, Anderson tre, intends to sell the security in early 2021. The investment accounted for under FC-ND) Is reported at its fair ate of 510,000 at year-end in its final statements Required a Record the income tax journal entry on December 31, 2020 . Note that multiple debits (when applicable in alphabeticaorder and for multiple credits then applicable) in /habetical order . Note the journal entry includes an extra ine that is not required, tinc Nas the account name and leave the Dr and Clanwes blank two) in the very last row of the journal entry Date ABUN MATH Dec 2000 . 12,025 come Tax 5.000 Duterte 3.875 15.000 Record me income tax jouma entry on December 31, 2024, assuming able income of $125.000 Note Ust multiple debits when applicable in alphabetical order and it multiple credits when applicable) in alphabetical order. Note: If the journal entry includes an extra line that is not required, select "A" as the account name and leave the Drand Cr, answers blank zero) in the very last row of the journal entry Date AGNAT Dec 31,2021 Deferred Tax Labrity 20.375 Income Tax Activate Windows Income Dr Gr. 11.875 D . 21250
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669bb8a50ae31_380669bb8a4963a1.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started