Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. kingbird corporation began 2020 with a $55,200 bal

Kingbird Corporation began 2020 with a $55,200 balance in the Deferred Tax Liability account. At...

60.1K

Verified Solution

Question

Accounting

image

image

image

Kingbird Corporation began 2020 with a $55,200 balance in the Deferred Tax Liability account. At the end of 2020, the related cumulative temporary difference amounts to $420,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $630,000, the tax rate for all years is 20%, and taxable income for 2020 is $486,000. (a) Your answer is correct. Compute income taxes payable for 2020. Income taxes payable $ $ 97,200 (b) Your answer is correct. 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 Credit Income Tax Expense 126,000 Income Tax Payable 97,200 Deferred Tax Liability 28,800 e Textbook and Media (c) 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).) Kingbird Corporation Income Statement (Partial)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students