The following facts relate to Krung Thep Corporation. 1. Deferred tax liability, January 1, 2020, $20,000. 2. Deferred tax asset, January 1, 2020, $0. 3. Taxable income for 2020, $95,000. 4. Pretax financial income for 2020, $200,000. 5. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $240,000. 6. 7. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $35,000. Tax rate for all years, 20%. 8. The company is expected to operate profitably in the future. Compute income taxes payable for 2020. Income taxes payable $ 19000 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) tigate Account Titles and Explanation Income Tax Expense Deferred Tax Asset Deferred Tax Liability Income Tax Payatle Debit 49000 240000 Credit 240000 19000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Give me correct answer with explanation.f

The following facts relate to Krung Thep Corporation.
1.
Deferred tax liability, January 1, 2020, $20,000.
2.
Deferred tax asset, January 1, 2020, $0.
3.
Taxable income for 2020, $95,000.
4.
Pretax financial income for 2020, $200,000.
5.
Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $240,000.
6.
7.
Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $35,000.
Tax rate for all years, 20%.
8.
The company is expected to operate profitably in the future.
Compute income taxes payable for 2020.
Income taxes payable
$
19000
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit
account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter 0 for the amounts.)
tigate
Account Titles and Explanation
Income Tax Expense
Deferred Tax Asset
Deferred Tax Liability
Income Tax Payatle
Debit
49000
240000
Credit
240000
19000
Transcribed Image Text:The following facts relate to Krung Thep Corporation. 1. Deferred tax liability, January 1, 2020, $20,000. 2. Deferred tax asset, January 1, 2020, $0. 3. Taxable income for 2020, $95,000. 4. Pretax financial income for 2020, $200,000. 5. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $240,000. 6. 7. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $35,000. Tax rate for all years, 20%. 8. The company is expected to operate profitably in the future. Compute income taxes payable for 2020. Income taxes payable $ 19000 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) tigate Account Titles and Explanation Income Tax Expense Deferred Tax Asset Deferred Tax Liability Income Tax Payatle Debit 49000 240000 Credit 240000 19000
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education