Recording and Reporting Multiple Temporary Differences The records of Cross Corporation provided the following income tax allocation data. 2020 2021 2022 2023 Taxable income $60,000 $80,000 $85.000 $75,000 Depreciation expense 15,000 15,000) 15,000) 15,000) Bad debt expense 120,000) (10,000) (18.00) 25,000 Pretax GAAP income $55,000 $65.000 $62,000 595,000 The depreciation adjustment results from a difference between the GAAP basis and tax basis of depreciable equipment. The bad debr expense adjustment results from a difference between the GAAP basis and tax basis of net accounts receivable. The deferred tax accounts have a zero balance at the start of 2020. Tax rate is 25%. Required Journal Entries Financial Statement Presentation a. Record the income tax journal entry on December 31, 2020. b. Record the income tax journal entry on December 31, 2021. c. Record the income tax journal entry on December 31, 2022. d. Record the income tax journal entry on December 31, 2023. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Note: if the journal entry includes an extra line that is not required, select "N/A" as the account name and leave the Dr. and Cr.answers blank (zero) in the very last row of the journal entry. a. Dr. Cr. . 0 D Date Account Name Dec 31, 2020 Deferred Tax Asset Income Tax Expense Deferred Tax Asset Income Tax Payable 0 0 0 0 0 0 Dr. cr. . 0 0 b. Date Account Name Dec 31, 2021 Deferred Tax Assel Deferred Tax Liability Income Tax Expense Income Tax Payable 0 0 0 0 D Dr. Cr. 0 D C. Date Account Name Dec 31, 2022 Deferred Tax Asset Deferred Tax Liability Income Tax Expense Income Tax Payable e 0 0 0 0 0 0 Dr. Cr. o. Date Account Name Dec 31, 2023 Deferred Tax Liability Income Tax Expense Deferred Tax Asset Income Tax Payable OOO Oo oo 0 Save Answers Recording and Reporting Multiple Temporary Differences The records of Cross Corporation provided the following income tax allocation data. 2020 2021 2022 2023 Taxable income $60,000 $80,000 $85.000 $75,000 Depreciation expense 15,000 15,000) 15,000 5,000) Bad debit expense (20,000) (10,000) (18,000) 25.000 Prelax GAAP income $55,000 $65,000 $62,000 $95.000 The depreciation adjustment results from a difference between the GAAP basis and tax basis of depreciable equipment. The bad debt expense adjustment results from a difference between the GAAP basis and tax basis of net accounts receivable. The deferred tax accounts have a zero balance at the start of 2020. Tax rate is 25%. Required Journal Entries Financial Statement Presentation e. Prepare the income tax section of the income statement for 2020 and provide the disclosure of current and deferred tax expense. f. Indicate the deferred income tax amount that would be recognized on the balance sheet at December 31, 2020. Note: Do not use negative signs with your answers. e. Partial Income Statement For the year ended December 31, 2020 Income before income Laxes Income tax expense Net income $ 55000 13750 $ 41250 2020 Financial Statement Disclosure Current lax expense $ 0 0 Total income tax expense 3 0 f. Balance Sheet, Dec. 31 2020 0 Save Answers