Question 11-pen sionHenry Company had Pretax financial income of $850,000 at the end of 2020. Estimate dwarranty expense of €500,000 will be deductible in 2021, €300,000 in 2022, and€150,000 in2023. The use of the depreciable assets will result in taxable amounts of €350,000 in each ofthe next three years.Required(a)Prepare a table of future taxable and deductible amounts.(b) - Prepare the journal entry to record income tax expense, deferred income taxes, andincome taxes payable for 2020, assuming an income tax rate of 35% for all years.

Solution a: Future Taxable Amount Future Deductible Amount 2021 350000 500000 2022 350000…

Henry Company had Pretax financial income of $850,000 at the end of 2020. Estimat warranty expense of €500,000 will be deductible in 2021, €300,000 in 2022, and €150,000 2023. The use of the depreciable assets will result in taxable amounts of €350,000 in each the next three years. Required (a) - Prepare a table of future taxable and deductible amounts.

Henry Company had Pretax financial income of $850,000 at the end of 2020. Estimat warranty expense of €500,000 will be deductible in 2021, €300,000 in 2022, and €150,000 2023. The use of the depreciable assets will result in taxable amounts of €350,000 in each the next three years. Required (a) - Prepare a table of future taxable and deductible amounts.

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

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 8E: Incomc Taxes Then Company has been in operation for several years. It has both a deductible and a...

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