Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
The information that follows pertains to Esther Food Products: At December 31, 2021, temporary differences were associated with the following future taxable (deductible) amounts: Depreciation
The information that follows pertains to Esther Food Products:
- At December 31, 2021, temporary differences were associated with the following future taxable (deductible) amounts:
Depreciation | $ | 52,000 | |
Prepaid expenses | 22,000 | ||
Warranty expenses | (19,000 | ) | |
- No temporary differences existed at the beginning of 2021.
- Pretax accounting income was $74,000 and taxable income was $19,000 for the year ended December 31, 2021.
- The tax rate is 25%.
Required: Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2021.
Prepare the appropriate journal entry to record income taxes for 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
- Record 2021 income taxes.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started