Bramble Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $816,000 $925,000 $930,000 Excess depreciation expense on tax return (30,200 ) (40,900 ) (10,200 ) Excess warranty expense in financial income 20,800 9,700 8,000 Taxable income $806,600 $893,800 $927,800 The income tax rate for all years is 20%.
Bramble Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $816,000 $925,000 $930,000 Excess depreciation expense on tax return (30,200 ) (40,900 ) (10,200 ) Excess warranty expense in financial income 20,800 9,700 8,000 Taxable income $806,600 $893,800 $927,800 The income tax rate for all years is 20%.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 8RE: At the end of 2019, Framber Company received 8,000 as a prepayment for renting a building to a...
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Exercise 19-08 (Part Level Submission)
Bramble Company has the following two temporary differences between its income tax expense and income taxes payable.
The income tax rate for all years is 20%.
|
2020
|
2021
|
2022
|
|||||||
| Pretax financial income |
$816,000
|
$925,000
|
$930,000
|
||||||
| Excess |
(30,200
|
)
|
(40,900
|
)
|
(10,200
|
)
|
|||
| Excess warranty expense in financial income |
20,800
|
9,700
|
8,000
|
||||||
| Taxable income |
$806,600
|
$893,800
|
$927,800
|
The income tax rate for all years is 20%.
Transcribed Image Text:v (a)
Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
2020
2021
2022
cy | a 2000-2021 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc.
Version 4.
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