The following facts relate to Sage Corporation. 1. 2. 3. 4. 5. 6. 7. 8. Deferred tax liability, January 1, 2020, $44,400. Deferred tax asset, January 1, 2020, $0. Taxable income for 2020, $105,450. Pretax financial income for 2020, $111.000. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $266,400. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $38,850. Tax rate for all years, 20%. The company is expected to operate profitably in the future. Compute income taxes payable for 2020. Income taxes payable eTextbook and Media List of Accounts $ Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (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 O for the amounts) Account Titles and Explanation Debit Sage Corporation Income Statement (Partial) Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45)) 11 Credit $
The following facts relate to Sage Corporation. 1. 2. 3. 4. 5. 6. 7. 8. Deferred tax liability, January 1, 2020, $44,400. Deferred tax asset, January 1, 2020, $0. Taxable income for 2020, $105,450. Pretax financial income for 2020, $111.000. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $266,400. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $38,850. Tax rate for all years, 20%. The company is expected to operate profitably in the future. Compute income taxes payable for 2020. Income taxes payable eTextbook and Media List of Accounts $ Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (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 O for the amounts) Account Titles and Explanation Debit Sage Corporation Income Statement (Partial) Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45)) 11 Credit $
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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Transcribed Image Text:The following facts relate to Sage Corporation.
1.
2.
3.
4.
5.
6.
7.
8.
Deferred tax liability, January 1, 2020, $44,400.
Deferred tax asset, January 1, 2020, $0.
Taxable income for 2020, $105,450.
Pretax financial income for 2020, $111,000.
Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $266,400.
Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $38,850.
Tax rate for all years, 20%.
The company is expected to operate profitably in the future..
Compute income taxes payable for 2020.
Income taxes payable $
eTextbook and Media
List of Accounts
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (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 O for the amounts)
Account Titles and Explanation
Sage Corporation
Income Statement (Partial)
Debit
Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes.
(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45))
$
$
Credit
$
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