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Wicks Corporation began operations on January 1, 2019. At the end of 2019, Wicks reported pretax financial income of $59,600 and taxable income of $62,930,
Wicks Corporation began operations on January 1, 2019. At the end of 2019, Wicks reported pretax financial income of $59,600 and taxable income of $62,930, due to two temporary differences. The income tax rate is 30% for 2019 through 2021 , but Congress has enacted a tax rate of 35% for 2022 and beyond. To determine its deferred taxes, Wicks prepared the following schedule of expected future taxable and deductible amounts for the two temporary differences: Required: 1. Prepare Wicks's income tax journal entry at the end of 2019. Assume a valuation allowance is not required. 2. Prepare the lower portion of the 2019 income statement for Wicks
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