Question
Thorn Corporation has deductible and taxable temporary differences. At the beginning of 2020, its deferred tax asset was $12,000, and its deferred tax liability was
Thorn Corporation has deductible and taxable temporary differences. At the beginning of 2020, its deferred tax asset was $12,000, and its deferred tax liability was $17,500. The company expects its future deductible amounts to be "deductible" in 2021 and its future taxable amount to be "taxable" in 2022. In 2019, Congress enacted revised tax rates for future years as follows: 2020, 30%, 2021, 32%, and 2022, 35%. At the end of 2020 Thorn had income taxes payable of $23,500, and increase in deferred tax liability of $3,000, and an ending balance in its deferred tax asset of $13,300.
Required: Assist Thorn in completing the schedule by filling in the blanks for items related to its income taxes for 2020. When required, round your answers to the nearest dollar.
Item | Amount | |
a. | Taxable income for 2020 | $fill in the blank 1 |
b. | Future taxable amount, 12/31/2020 | $fill in the blank 2 |
c. | Increase in future deductible amount during 2020 | $fill in the blank 3 |
d. | Income tax expense for 2020 | $fill in the blank 4 |
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