On December 31, 2020, Lexxus Inc. recorded an unrealized gain in income of $5,000 related...
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On December 31, 2020, Lexxus Inc. recorded an unrealized gain in income of $5,000 related to its trading debt securities originally purchased on December 15, 2020, for $20,000. Lexxus recognized pretax GAAP income of $80,000 in 2020 and had a tax rate of 25%. Record the income tax journal entry on December 31, 2020. Assume zero beginning balances in deferred tax accounts. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.
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