URGENTLY NEED THE ANSWER, PLEASE HELP!!!!
Prior to 2020. Batman Inc. had no transactions that lead to temporary differences between book and taxable income for years. However, they did pay a reoccurring premium for key-officer life insurance policies of $7000 annually. After the untimely death of their manager, Mr. Robin, they suffered a net operating loss in 2019. Thankfully, they received a $100.000 settlement payment from the insurance company that, after some delays in production, helped them to get back on their feet in 2020. The financial information about the 2018-2022 income (historical & expected future) and tax rates is presented below. Year Taxable Income (Loss) 80,000 Tax Rate 2018 .40 2019 (170,000) .45 .30 .40 2020 expect 110,000 2021 expect 80.000 2022 expect 100,000 *No future changes in tax rates are known as of 2022 40 Instructions: Using the information above, address the following questions. All numerical answers should be rounded to the nearest whole dollar, using no dollar signs, commas, or decimal places. Failure to follow these instructions will result in missed points - regardless of a correct underlying calculation or process. 1. What was pretax income in 2018? 2. What is the tax expense for 2019? and tax expense 3. For 2020, provide the tax payable amounts. 4. If all expectations of future income are exactly met, the taxes that will be due in 2022 will be 5. If, in 2020. Batman unexpectedly earns a total of $200,000, how would this affect the 2020 tax expense? Provide the 2020 tax expense that would be journalized. Prior to 2020. Batman Inc. had no transactions that lead to temporary differences between book and taxable income for years. However, they did pay a reoccurring premium for key-officer life insurance policies of $7000 annually. After the untimely death of their manager, Mr. Robin, they suffered a net operating loss in 2019. Thankfully, they received a $100.000 settlement payment from the insurance company that, after some delays in production, helped them to get back on their feet in 2020. The financial information about the 2018-2022 income (historical & expected future) and tax rates is presented below. Year Taxable Income (Loss) 80,000 Tax Rate 2018 .40 2019 (170,000) .45 .30 .40 2020 expect 110,000 2021 expect 80.000 2022 expect 100,000 *No future changes in tax rates are known as of 2022 40 Instructions: Using the information above, address the following questions. All numerical answers should be rounded to the nearest whole dollar, using no dollar signs, commas, or decimal places. Failure to follow these instructions will result in missed points - regardless of a correct underlying calculation or process. 1. What was pretax income in 2018? 2. What is the tax expense for 2019? and tax expense 3. For 2020, provide the tax payable amounts. 4. If all expectations of future income are exactly met, the taxes that will be due in 2022 will be 5. If, in 2020. Batman unexpectedly earns a total of $200,000, how would this affect the 2020 tax expense? Provide the 2020 tax expense that would be journalized
