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Please, provide detail explanation and step b step solution. Cullumber Company has the following two temporary differences between its income tax expense and income taxes
Please, provide detail explanation and step b step solution.
Cullumber Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $877,000 $932,000 $912,000 Excess depreciation expense on tax return (29,500) (39,400) (9,800) Excess warranty expense in financial income 19,800 10,400 7,600 Taxable income $867,300 $903,000 $909,800 The income tax rate for all years is 20%. (a) 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 2021 2022Step by Step Solution
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