Required:(i)taxes payable for the year2020(ii)deferred tax liability for theCalculate theCalculate theyear 2020(iii)total tax expense for 2020(iv)journal entry to record thetax expense for 2020(v)Calculate thePrepare thePrepare theincome statementpresentation of the taxamounts10.5 O D A Grace Corporation'spretax fınancial incomeis $600,000 and taxableincome is $550,000 foryear 2020.Its beginning deferredtax liability account hasa balance of $75,000. Itscumulative temporarydifferences for year-end2020 is equal to $300,000and will reverse and resultin taxable amounts asfollows:YearТаxableAmount$100,000$ 75,000$125,000The tax rate is 30% for all202120222023years.

i) tax payable for 2020 = 30% of taxable income = 30% x $550000 = $165000 ii) Deferred tax…

taxes payable for the year 2020 (ii) deferred tax liability for the year 2020 (iii) total tax expense for 2020 (iv) journal entry to record the tax expense for 2020 (v) Calculate the Calculate the Prepare the Prepare the income statement presentation of the tax amounts

taxes payable for the year 2020 (ii) deferred tax liability for the year 2020 (iii) total tax expense for 2020 (iv) journal entry to record the tax expense for 2020 (v) Calculate the Calculate the Prepare the Prepare the income statement presentation of the tax amounts

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 56P

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