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The following facts relate to Whispering Corporation. 1. Deferred tax liability, January 1, 2020, $33,300. 2. Deferred tax asset, January 1, 2020, $11,100. 3. Taxable
The following facts relate to Whispering Corporation. 1. Deferred tax liability, January 1, 2020, $33,300. 2. Deferred tax asset, January 1, 2020, $11,100. 3. Taxable income for 2020, $116,550. 4. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $255,300. 5. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $105,450. 6. Tax rate for all years, 20%. No permanent differences exist. 7. The company is expected to operate profitably in the future. Your answer is correct. Compute the amount of pretax financial income for 2020. Pretax financial income $ 155,400 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
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