Question
The following information is available for Sheridan Inc. for 2024: 1. 2. Excess of tax depreciation over book depreciation, $76,800. This $76,800 difference will
The following information is available for Sheridan Inc. for 2024: 1. 2. Excess of tax depreciation over book depreciation, $76,800. This $76,800 difference will reverse equally over the next 4 years. Deferral, for book purposes, of $25,800 of subscription income received in advance. The subscription income will be earned in 2025. 3. Pretax financial income, $164,000. 4. Tax rate for all years, 20%. Your answer is correct. Compute taxable income for 2024. Taxable income $ eTextbook and Media List of Accounts 113000 Your answer is partially correct. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Income Tax Expense Deferred Tax Asset Deferred Tax Liability Income Tax Payable eTextbook and Media List of Accounts Your answer is partially correct. Debit Credit 65600 10320 30720 45200 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025, assuming taxable income of $263,800. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Income Tax Expense Deferred Tax Liability Deferred Tax Asset Income Tax Payable Debit 7680 Credit 10320 94720
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