Ivanhoe Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $811,000 $932,000 $992,000 Excess depreciation expense on tax return (31,500 ) (39,100 ) (9,900 ) Excess warranty expense in financial income 19,900 9,800 8,300 Taxable income $799,400 $902,700 $990,400 The income tax rate for all years is 20%. Prepare the income tax expense section of the income statement for 2022, beginning with the line “Pretax financial income.”
Ivanhoe Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $811,000 $932,000 $992,000 Excess depreciation expense on tax return (31,500 ) (39,100 ) (9,900 ) Excess warranty expense in financial income 19,900 9,800 8,300 Taxable income $799,400 $902,700 $990,400 The income tax rate for all years is 20%. Prepare the income tax expense section of the income statement for 2022, beginning with the line “Pretax financial income.”
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 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...
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Ivanhoe Company has the following two temporary differences between its income tax expense and income taxes payable.
|
2020
|
2021
|
2022
|
|||||||
| Pretax financial income |
$811,000
|
$932,000
|
$992,000
|
||||||
| Excess |
(31,500
|
)
|
(39,100
|
)
|
(9,900
|
)
|
|||
| Excess warranty expense in financial income |
19,900
|
9,800
|
8,300
|
||||||
| Taxable income |
$799,400
|
$902,700
|
$990,400
|
The income tax rate for all years is 20%.
Prepare the income tax expense section of the income statement for 2022, beginning with the line “Pretax financial income.”
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