The following are two independent situations related to future taxable and deductible amounts that resulted from temporary differences at December 31, 2020. In both situations, the future taxable amounts relate to property, plant, and equipment depreciation, and the future deductible amounts relate to settlements of litigation that were previously accrued in the accounts. 1. Riverbed Corp. has developed the following schedule of future tacable and deductible amounts: 2021 2022 2023 2024 2025 Taxable amounts $800 $ 800 $800 $ 200 $200 Deductible amounts 0 (3.600) 0 Riverbed reported a net deferred tax liability of $1,000 at January 1, 2020. 2. Concord Corp. has the following schedule of future taxable and deductible amounts: 2021 2022 2023 2024 Taxable amounts $1,000 $1,000 $1,000 $1.000 Deductible amounts 0 0 (6,600 0 Concord Corp.reported a net deferred tax asset of $1,460 at January 1, 2020. Both Riverbed Corp. and Concord Corp. have taxable income of $ 8,200 in 2020 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2020 are 25% for 2020 to 2023, and 30% for 2024 and subsequent years. All of the underlying temporary differences relate to non-current assets and liabilities. Both Concord and Riverbed report under IFRS. (a) Your Answer Correct Answer (Used) I - Your answer is partially correct. L- Determine the deferred tax assets or liabilities that will be reported on each company's December 31, 2020 SEP. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg (450 Riverbed Corp. Concord Corp. Deferred tax asset / liability 300 Debit BOC C e Textbook and Media Solution List of Accounts Attempts: 5 of 5 used (b) ) r | Your answer is partially correct. L For each of these two situations, prepare journal entries to record income taxes for 2020. (Credit account titles are automatically , indented when the amount is entered. Do not indent manually. If no entry is required select "No Entry for the account titles and entero for the amounts.) Riverbed Corp. Date Account Titles and Explanation Debit Credit December 31, 2020 Current Tax Expense 600 Income Tax Payable 8 (To record current tax expense) December 31, 2020 Deferred Tax Expense 360 Income Tax Payable Deferred Tax Expense-OCI (To record deferred tax expense) Concord Corp. Date Account Titles and Explanation Debit Credit December 31, 2020 Current Tax Expense 360 Income Tax Payable (To record current tax expense) December 31, 2020 Deferred Tax Expense 360 Current Tax Payable (To record deferred tax expense) The following are two independent situations related to future taxable and deductible amounts that resulted from temporary differences at December 31, 2020. In both situations, the future taxable amounts relate to property, plant, and equipment depreciation, and the future deductible amounts relate to settlements of litigation that were previously accrued in the accounts. 1. Riverbed Corp. has developed the following schedule of future tacable and deductible amounts: 2021 2022 2023 2024 2025 Taxable amounts $800 $ 800 $800 $ 200 $200 Deductible amounts 0 (3.600) 0 Riverbed reported a net deferred tax liability of $1,000 at January 1, 2020. 2. Concord Corp. has the following schedule of future taxable and deductible amounts: 2021 2022 2023 2024 Taxable amounts $1,000 $1,000 $1,000 $1.000 Deductible amounts 0 0 (6,600 0 Concord Corp.reported a net deferred tax asset of $1,460 at January 1, 2020. Both Riverbed Corp. and Concord Corp. have taxable income of $ 8,200 in 2020 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2020 are 25% for 2020 to 2023, and 30% for 2024 and subsequent years. All of the underlying temporary differences relate to non-current assets and liabilities. Both Concord and Riverbed report under IFRS. (a) Your Answer Correct Answer (Used) I - Your answer is partially correct. L- Determine the deferred tax assets or liabilities that will be reported on each company's December 31, 2020 SEP. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg (450 Riverbed Corp. Concord Corp. Deferred tax asset / liability 300 Debit BOC C e Textbook and Media Solution List of Accounts Attempts: 5 of 5 used (b) ) r | Your answer is partially correct. L For each of these two situations, prepare journal entries to record income taxes for 2020. (Credit account titles are automatically , indented when the amount is entered. Do not indent manually. If no entry is required select "No Entry for the account titles and entero for the amounts.) Riverbed Corp. Date Account Titles and Explanation Debit Credit December 31, 2020 Current Tax Expense 600 Income Tax Payable 8 (To record current tax expense) December 31, 2020 Deferred Tax Expense 360 Income Tax Payable Deferred Tax Expense-OCI (To record deferred tax expense) Concord Corp. Date Account Titles and Explanation Debit Credit December 31, 2020 Current Tax Expense 360 Income Tax Payable (To record current tax expense) December 31, 2020 Deferred Tax Expense 360 Current Tax Payable (To record deferred tax expense)
