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please explain calculations Ayayai Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial
please explain calculations
Ayayai Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $ 864,000 $ 949,000 $ 920,000 (30,800) (41,000) (9,600) Excess depreciation expense on tax return Excess warranty expense in financial income 20,900 10,500 8,300 Taxable income $ 854,100 $918,500 $ 918,700 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 Ofor the amounts.) Account Titles and Explanation Debit Credit 2020 Income Tax Expense 172.800 Deferred Tax Asset 4180 Deferred Tax Liability 6160 Income Tax Payable 170,820 2021 Income Tax Expense 189,800 Deferred Tax Asset 2100 Deferred Tax Liability 8200 Income Tax Payable 183,700 2022 Income Tax Expense 184,000 Deferred Tax Asset 1660 Deferred Tax Liability 1920 Income Tax Payable 183,740 (b) Your Answer Correct Answer Your answer is correct. Indicate how deferred taxes will be reported on the 2022 balance sheet. Ayayai's product warranty is for 12 months. Ayayai Company Balance Sheet (Partial) December 31, 2022 Noncurrent Liabilities Deferred Tax Liability $ 8340 (c) Your answer is partially correct. Prepare the income tax expense section of the income statement for 2022, beginning with the line "Pretax financial income." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) a Prepare the income tax expense section of the income statement for 2022, beginning with the line "Pretax financial income." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) Ayayai Company Income Statement (Partial) For the Year Ended December 31, 2022 Pretax Financial Income 920,000 Income Tax Expense DeferredStep by Step Solution
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