IMPORTANT: PLEASE SEE IMAGE, ANSWER PART B CORRECTLY AND ILL LIKE YOUR ANSWER. I attached part a for guidance THANK YOU!Bramble Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022Pretax financial income $816,000 $925,000 $930,000 Excess depreciation expense on tax return (30,200) (40,900) (10,200)Excess warranty expense in financial income 20,800 9,700 8,000 Taxable income $806,600 $893,800 $927,800 The income tax rate for all years is 20%. Account Titles and ExplanationDebitCredit2020Income Tax Exхрense163200Deferred Tax Asset4160Income Tax Payable161320Deferred Tax Liability60402021Income Tax Expense185000Deferred Tax Asset1940Income Tax Payable178760Deferred Tax Liability81802022Income Tax Expense186000Deferred Tax Asset1600Income Tax Payable185560Deferred Tax Liability2040 (Ь)Indicate how deferred taxes will be reported on the 2022 balance sheet. Bramble's product warranty is for 12 months.Bramble CompanyBalance Sheet (Partial)Click if you would like to Show Work for this question: Open Show Work

A deferred tax liability is a tax that is assessed or is due for the current period but has not yet…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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IMPORTANT: PLEASE SEE IMAGE, ANSWER PART B CORRECTLY AND ILL LIKE YOUR ANSWER. I attached part a for guidance THANK YOU!

Bramble Company has the following two temporary differences between its income tax expense and income taxes payable.

	2020		2021		2022
Pretax financial income	$816,000			$925,000		$930,000
Excess depreciation expense on tax return	(30,200	)		(40,900	)	(10,200	)
Excess warranty expense in financial income	20,800			9,700		8,000
Taxable income	$806,600			$893,800		$927,800

The income tax rate for all years is 20%.

Account Titles and Explanation
Debit
Credit
2020
Income Tax Exхрense
163200
Deferred Tax Asset
4160
Income Tax Payable
161320
Deferred Tax Liability
6040
2021
Income Tax Expense
185000
Deferred Tax Asset
1940
Income Tax Payable
178760
Deferred Tax Liability
8180
2022
Income Tax Expense
186000
Deferred Tax Asset
1600
Income Tax Payable
185560
Deferred Tax Liability
2040

(Ь)
Indicate how deferred taxes will be reported on the 2022 balance sheet. Bramble's product warranty is for 12 months.
Bramble Company
Balance Sheet (Partial)
Click if you would like to Show Work for this question: Open Show Work

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