Question

. JUU have completed so far. It does not indicate complet The information that follows pertains to Esther Food Products: a. At December 31, 2021, temporary differences were associated with the following future taxable (deductible) amounts: Depreciation Prepaid expenses Warranty expenses $ 66,000 28,000 (10,000) b. No temporary differences existed at the beginning of 2021 C. Pretax accounting income was $109,000 and taxable income was $25,000 for the year ended December 31, 2021 d. The tax rate is 25% Required: Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2021 Answer is not complete. Complete this question by entering your answers in the tabs below. Calculation - General Journal Complete the following table given below to record income taxes for 2021. (Negative amounts should be entered with a minus sign.) < Prey 7 of 10 !!! Next > MacBook Air

Answer 1

Hi

Let me know in case you face any issue:

Sign can be +/-: Solution: Tax Rate Tax Recorded as: 109000 Pretax Accounting income Permanent Difference 109000 25% $ 27,250 Income Tax Expense Income Subject to Taxation Temporary Difference: $ -66,000 $ -28,000 $ 10,000 $ 25,000 25% 25% 25% 25% $ $ $ $ -16,500 Deferred Tax Liability -7,000 Deferred Tax Liability 2,500 Deferred Tax Asset 6,250 Income Tax Payable Income Taxable in Current Year Naming convention and format is not available, can be slightly different: 1)G) Event Credit Debit 27,250 2,500 $ Account title and explaination Income Tax Expense Deferred Tax Asset Deferred Tax Liability (16500+7000) Income Tax Payable (plug) (To record 2018 income taxes) $ $ 23,500 6,250