Exercise 19-11 At the end of 2019, Concord Company has $180,300 of cumulative temporary differences that...

Exercise 19-11

At the end of 2019, Concord Company has $180,300 of cumulative temporary differences that will result in reporting the following future taxable amounts.

2020 $60,400

2021 52,200

2022 38,700

2023 29,000

$180,300

Tax rates enacted as of the beginning of 2018 are: 2018 and 2019 40 %

2020 and 2021 30 %

2022 and later 25 %

Concord’s taxable income for 2019 is $321,800. Taxable income is expected in all future years.

(a) Prepare the journal entry for Concord to record income taxes payable, deferred income taxes, and income tax expense for 2019, assuming that there were no deferred taxes at the end of 2018. (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.)
(b) Prepare the journal entry for Concord to record income taxes payable, deferred income taxes, and income tax expense for 2019, assuming that there was a balance of $23,100 in a Deferred Tax Liability account at the end of 2018. (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.)

Expert Solution

ekkarill92 answered 2 years ago

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