Respuesta :
Answer:
The calculations and journal entries are shown below:
Explanation:
The computations are shown below:
a. The taxable income is
Pretax financial income $302,100
Less: Excess of tax depreciation over book depreciation -$43,800
Add: Rent received in advance deferred for book purposes $18,100
Taxable income $276,400
b. The journal entry is shown below:
Income tax expense $60,420
Deferred tax asset (20% × $18,100) $3,620
To Income tax payable (20% × $276,400) $55,280
To Deferred tax liability (20% × $43,800) $8,760
(Being the income tax expense, deferred income taxes, and income taxes payable for 2019 is recorded)
c. The journal entry is shown below:
Income tax expense $63,270
Deferred tax liability ($8760 ÷ 4 years) $2,190
To Income tax payable (20% × $309,200) $61,840
To Deferred tax asset (20% × $18,100) $3,620
(Being the income tax expense, deferred income taxes, and income taxes payable for 20 is recorded)
