Anchor, inc, reports pretax financial income of $100,000 for 2020, S120,000 for 2021, and for 2022. The following items cause taxable income on Anchor's income tax return to be different than pretax financial income for 2020: Proceeds from the collection of an officer's life insurance policy in the amount of $10,000. 1. Depreciation on the 2020 tax returm is greater than on the income statement by $24,000. That difference will reverse over the following two years. 2. 3.Rent collected on the tax return is greater than that recognized on the 2020 income statement by $18,000. That amount will reverse in 2021. There were no additional originating differences during the years 2020 through 2022, and there were no deferred income tax balances at January 1, 2020. Anchor's income tax rate for all three years 2020- 2022 was 20%. REQUIRED: 1. Compute taxable income on the income tax return for each of the years 2020, 2021 and 2022. Prepare the journal entries to record Anchor's income taxes for each of the years 2020, 2021, and 2022. 2.

Anchor, inc, reports pretax financial income of $100,000 for 2020, S120,000 for 2021, and for 2022. The following items cause taxable income on Anchor's income tax return to be different than pretax financial income for 2020: Proceeds from the collection of an officer's life insurance policy in the amount of $10,000. 1. Depreciation on the 2020 tax returm is greater than on the income statement by $24,000. That difference will reverse over the following two years. 2. 3.Rent collected on the tax return is greater than that recognized on the 2020 income statement by $18,000. That amount will reverse in 2021. There were no additional originating differences during the years 2020 through 2022, and there were no deferred income tax balances at January 1, 2020. Anchor's income tax rate for all three years 2020- 2022 was 20%. REQUIRED: 1. Compute taxable income on the income tax return for each of the years 2020, 2021 and 2022. Prepare the journal entries to record Anchor's income taxes for each of the years 2020, 2021, and 2022. 2.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 9DQ

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