Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 19-01 The following information is available for Riverbed Corporation for 2020. 3. Depreciation reported on the tax return exceeded depreciation reported on the income

image text in transcribedimage text in transcribedimage text in transcribed

Problem 19-01 The following information is available for Riverbed Corporation for 2020. 3. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $130,000. This difference will reverse in equal amounts of $32,500 over the years 2021-2024. Interest received on municipal bonds was $11,000. Rent collected in advance on January 1, 2020, totaled $59,400 for a 3-year period. Of this amount, $39,600 was reported as unearned at December 31, 2020, for book purposes. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. Income taxes of $297,000 are due per the tax return for 2020. No deferred taxes existed at the beginning of 2020. 6. Compute taxable income for 2020. Taxable income for 2020 333160 SHOW LIST OF ACCOUNTS Compute pretax financial income for 2020. Pretax financial income for 2020 398400 SHOW LIST OF ACCOUNTS Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume taxable income was $893,000 in 2021. (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 o for the amounts.) Date Account Titles and Explanation Debit Credit 2020 Income Tax Expense 333160 Deferred Tax Asset D 15480 Income Tax Payable 297000 Deferred Tax Liability 52000 2021 SHOW LIST OF ACCOUNTS Prepare the income tax expense section of the income statement for 2020, beginning with "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Riverbed Corporation Income Statement (Partial) SHOW LIST OF ACCOUNTS

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditing In Plain English A Simple Guide To Super Effective ISO Audits

Authors: Craig Cochran

1st Edition

1932828168, 978-1932828160

More Books

Students also viewed these Accounting questions

Question

2-26. Divide the class into groups of three to five students.

Answered: 1 week ago