sed to amount of $491,000. Taxable income for 2021 is $845,000. The tax rate is 30% for all years. (a) Record income tax expense, deferred income taxes, and income taxes payable for 2021, assuming that it is p that the deferred tax asset will be realized. (Credit account titles are automatically indented when the amount is not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

sed to amount of $491,000. Taxable income for 2021 is $845,000. The tax rate is 30% for all years. (a) Record income tax expense, deferred income taxes, and income taxes payable for 2021, assuming that it is p that the deferred tax asset will be realized. (Credit account titles are automatically indented when the amount is not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 4BCRQ

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Prior to and during 2019, Shadrach Company reported tax depreciation at an amount higher than the amount of financial depreciation, resulting in a book value of the depreciable assets of 24,500 for financial reporting purposes and of 20,000 for tax purposes at the end of 2019. In addition, Shadrach recognized a 3,500 estimated liability for legal expenses in the financial statements during 2019; it expects to pay this liability (and deduct it for tax purposes) in 2023. The current tax rate is 30%, no change in the tax rate has been enacted, and the company expects to be profitable in future years. What is the amount of the net deferred tax liability at the end of 2019? a. 300 b. 450 c. 1,050 d. 1,350
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