Compute income taxes payable for 2020 began 2020 with a $47,840 balance in the Deferred Tax Liability account. At the end of 2020, the related cumulative temporary difference amounts to $364,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $546,000, the tax rate for all years is 20%, and taxable income for 2020 is $421,200.Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.

Dr Income tax expense 109,200

    Cr Income tax payable 84,240

    Cr Deferred tax liability 24,960

Explanation:

first we must determine:

income taxes payable = taxable income x current tax rate = $421,200 x 20% = $84,240

income tax expense = pretax accounting income x current tax rate = $546,000 x 20% = $109,200

deferred tax liability = income tax expense - income tax payable = $109,200 - $84,240 = $24,960

now the journal entry:

Dr Income tax expense 109,200

    Cr Income tax payable 84,240

    Cr Deferred tax liability 24,960

you can lose ranking 2 ways.

1) you don't have enough points due to you expending them by asking questions/your answers are deleted.

2) your brainliest's expired. this means that brainliests, once they exceed the 30 day limit, expires. this is to ensure that you continue to contribute into the community at a constant rank if you want to continue to have/exceed the rank you have right now.

if you go to profile, and click "show more information" located on the bottom left of the box with your information (on top of the questions answered, questions asked, and friends), you will be given the following information (example):

member since : 02/13/2017, 18: 11

questions answered: 9741

questions asked: 162

no. of brainliest answers: 1575

brainliest answers in last 30 days: 10

warnings: 0 view

questions/answers reported: 2637

questions/answers incorrectly reported: 64

look at the "brainliest answers in the last 30 days". this is the one that will affect your rank other than your points. again, once your brainliest expires (was earned 31+ days ago), it will not be counted.

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answer; functional fixedness;