Oriole Corporation began 2025 with a $50,600 balance in the Deferred Tax Liability account. At the end of 2025, the related cumulative temporary difference amounts to $385,000, and it will reverse evenly over the next 2 years. Pretax accounting income 2025 is $577,500, the tax rate for all years is 20%, and taxable income for 2025 is $445,500. (a) Your Answer Correct Answer (Used) Compute income taxes payable for 2025. (b) Income taxes payable $ 89,100 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation I Debit Credit

Oriole Corporation began 2025 with a $50,600 balance in the Deferred Tax Liability account. At the end of 2025, the related cumulative temporary difference amounts to $385,000, and it will reverse evenly over the next 2 years. Pretax accounting income 2025 is $577,500, the tax rate for all years is 20%, and taxable income for 2025 is $445,500. (a) Your Answer Correct Answer (Used) Compute income taxes payable for 2025. (b) Income taxes payable $ 89,100 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation I Debit Credit

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 9DQ

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