Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Skysong Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $876,000 $908,000

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Skysong Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $876,000 $908,000 $904,000 Excess depreciation expense on tax return (28,500) (41,000) (10,000) Excess warranty expense in financial income 20,900 10,300 8,000 Taxable income $868,400 $877,300 $902,000 The income tax rate for all years is 20%. Account Titles and Explanation Debit Credit 2020 Deferred Tax Asset 4180 Income Tax Expense 175200 Deferred Tax Liability 5700 Income Tax Payable 173680 2021 Deferred Tax Asset 2060 Income Tax Expense 181600 Deferred Tax Liability 8200 Income Tax Payable 175460 2022 2022 Deferred Tax Asset 1600 Income Tax Expense 180800 Deferred Tax Liability 2000 Income Tax Payable 180400 Your Answer Correct Answer (Used) Indicate how deferred taxes will be reported on the 2022 balance sheet. Skysong's product warranty is for 12 months. Skysong Company Balance Sheet (Partial) December 31, 2022 Noncurrent Liabilities Deferred Tax Liability $ 8,060 Prepare the income tax expense section of the income statement for 2022, beginning with the line "Pretax financial income." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg: (45).) Skysong Company Income Statement (Partial) $ $ $

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

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield

15th edition

978-1118159644, 9781118562185, 1118159640, 1118147294, 978-1118147290

More Books

Students also viewed these Accounting questions

Question

What is carpal tunnel syndrome?

Answered: 1 week ago