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Shang Corporation started operations on January 1, 2020. Taxable income from the tax return is $2,850,000. Income tax rate is 25%. There were no beginning
Shang Corporation started operations on January 1, 2020. Taxable income from the tax return is $2,850,000. Income tax rate is 25%. There were no beginning balances in deferred tax accounts. On December 31, 2020, Shang reported $330,000 in installment sales, which will be collected equally over the years 2021, 2022, and 2023.
a. Provide the income tax journal entry on December 31, 2020. (1 point)
b. Provide the income tax journal entry on December 31, 2021 assuming the following (1 point):
- 2021 book income is $3,150,000
- No originating book-tax differences occurred in 2021
a) | Account | Debit | Credit |
b) | Account | Debit | Credit |
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