Question 1 of 1 -11 Ini Marin Corp. sold an investment on an installment basis. The total gain of $80.400 was reported for financial reporting purposes in the period of sale. The company qualifies to use the installment-sales method for tax purposes. The installment period is 3 years; one-third of the sale price is collected in the period of sale. The tax rate was 40% in 2020, and 20% in 2021 and 2022. The 20% tax rate was not enacted in law until 2021. The accounting and tax data for the 3 years is shown below. Financial Accounting Tax Return 2020 (40% tax rate) Income before temporary difference $93,800 $93,800 Temporary difference 80.400 26,800 Income $174.200 $120,600 2021 (20% tax rate) Income before temporary difference Temporary difference Income $93,800 0 $93,800 $93.800 26,800 $120,600 2022 (20% tax rate) Income before temporary difference Temporary difference Income $93,800 0 $93,800 $93,800 26,800 $120,600 Calculate cumulative temporary differences for years 2020-2022. (Negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.s. (45).) Calculate cumulative temporary differences for years 2020-2022. (Negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2020 2021 2022 Cumulative temporary difference $ Calculate current tax expense for years 2020-2022. Current tax for 2020 Current tax for 2021 Current tax for 2022 Calculate deferred tax expense for 2020-2022. Deferred tax for 2020 Deferred tax for 2021 $ $ for 2022 Deferred tax Prepare the journal entries to record the income tax expense, deferred income taxes, and the income taxes payable at the end of each year. No deferred income taxes existed at the beginning of 2020. (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.) Debit Credit Date Account Titles and Explanation 2020 2021 (To record the adjustment for the decrease in the enacted tax rate.) (To record income taxes.) 2022 Question 1 of 1 - / 1 Show how the deferred taxes will appear on the balance sheet at the end of each year, Marin Corp Balance Sheet (Partial) $ Marin Corp. Balance Sheet (Partial) $ Marin Corp. Balance Sheet (Partial) Draft the income tax expense section of the income statement for each year, 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).) Marin Corp. Rincome Statement (Partial) $ Marin Corp. Income Statement (Partial) $ $ $ Marin Corp. Income Statement (Partial) $ $
