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the differences between the book basis ans tax basis of the assets and liabilities of morgan corporation at the end of 2019 are presented below
the differences between the book basis ans tax basis of the assets and liabilities of morgan corporation at the end of 2019 are presented below
accounts receivable 50,000 book basis 0 tax basis
litigation liability 20,000 book basis 0 tax basis
it is estimated that the litigation liability will be settled in 2020. The difference in accounts receivable will result in taxable amounts of $30,000 in 2020 and 20,000 in 2021. the company has taxable income of 300,000 in 2019 and is expected to have taxable income in each of the following 2 years. its enacted tax rate is 34% for all years. this is the companys first year of operations
A. prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019
B. indicate how deferred income taxes will be reported on the statement of financial position at the end of 2019
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