Question 13 0.71/1 View Policies Show Attempt History Current Attempt in Progress Blossom Inc. has two temporary differences at the end of 2016. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Blossom's accounting department has developed a schedule of future taxable and deductible amounts related to these temporary differences as follows. Taxable amounts Deductible amounts 2017 2018 2019 2020 $42,800 $52,900 $56,700 $82,400 (13,600) (20,600) $42,800 $39,300 $36,100 $82,400 As of the beginning of 2016, the enacted tax rate is 34% for 2016 and 2017, and 38% for 2018-2021. At the beginning of 2016, the company had no deferred income taxes on its balance sheet. Taxable income for 2016 is $523,000. Taxable income is expected in all future years. - Your answer is partially correct. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2016. (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 Income Tax Expense 252,336 Deferred Tax Asset 12,996 Income Tax Payable 177,820 Deferred Tax Liability 87,512 Your answer is partially correct. Indicate how deferred income taxes would be classified on the balance sheet at the end of 2016. Blossom Inc. Balance Sheet December 31, 2016 Non-current Liabilities Deferred Tax Liability $ 87,512 List of Accounts Question 13 0.71/1 View Policies Show Attempt History Current Attempt in Progress Blossom Inc. has two temporary differences at the end of 2016. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Blossom's accounting department has developed a schedule of future taxable and deductible amounts related to these temporary differences as follows. Taxable amounts Deductible amounts 2017 2018 2019 2020 $42,800 $52,900 $56,700 $82,400 (13,600) (20,600) $42,800 $39,300 $36,100 $82,400 As of the beginning of 2016, the enacted tax rate is 34% for 2016 and 2017, and 38% for 2018-2021. At the beginning of 2016, the company had no deferred income taxes on its balance sheet. Taxable income for 2016 is $523,000. Taxable income is expected in all future years. - Your answer is partially correct. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2016. (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 Income Tax Expense 252,336 Deferred Tax Asset 12,996 Income Tax Payable 177,820 Deferred Tax Liability 87,512 Your answer is partially correct. Indicate how deferred income taxes would be classified on the balance sheet at the end of 2016. Blossom Inc. Balance Sheet December 31, 2016 Non-current Liabilities Deferred Tax Liability $ 87,512 List of Accounts
