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Van Zandt Corp. reports $530,000 of pretax financial income in 2021, which

includes $50,000 of expenses for fines levied against the company for

OSHA workplace safety violations. These expenses are not tax deductible.

Because of the use of accelerated depreciation for tax purposes, taxable

income is $160,000 lower in 2021. This is Van Zandt's only temporary

difference, and it will reverse by $100,000 in 2022 and $60,000 in 2023.

The enacted tax rate is 25% for all years.

Required

a. Prepare Van Zandt's required journal entry for 2021 income taxes.

Van Zandt Corp. reports $530,000 of pretax financial income in 2021, which includes $50,000 of expenses for fines levied against the company for OSHA workplace safety violations. These expenses are not tax deductible. Because of the use of accelerated depreciation for tax purposes, taxable income is $160,000 lower in 2021. This is Van Zandt's only temporary difference, and it will reverse by $100,000 in 2022 and $60,000 in 2023. The enacted tax rate is 25% for all years. Required a. Prepare Van Zandt's required journal entry for 2021 income taxes. Edit View Insert Format Tools Table 12pt Paragraph BIUA 2 TV Continued from previous problem At the beginning of 2022, new legislation is enacted which lowers the tax rate to 20% for 2022 and all future periods. Van Zandt reports $210,000 of pretax financial income in 2022, and the temporary difference from 2021 reverses as scheduled. Required b. Prepare Van Zandt's required journal entry(ies) for 2022 income taxes. Edit View Insert Format Tools Table 12pt Paragraph BIUA 2v TV : Continued from previous problem Van Zandt reports $430,000 of pretax financial income in 2023, which includes $20,000 of interest revenue from municipal bonds. The interest is nontaxable. The remainder of the temporary difference from 2021 reverses as scheduled. Required c. Prepare Van Zandt's required journal entry for 2023 income taxes. d. Prepare a partial income statement for 2023, starting with "Income before income taxes". Edit View Insert Format Tools Table V 12pt Paragraph BIUA 2