Question

Sarasota Inc. has two temporary differences at the end of 2019. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Sarasota’s accounting department has developed a schedule of future taxable and deductible amounts related to these temporary differences as follows. 2020 2021 2022 2023 Taxable amounts $36,800 $46,300 $59,500 $81,000 Deductible amounts (15,700 ) (19,100 ) $36,800 $30,600 $40,400 $81,000 As of the beginning of 2019, the enacted tax rate is 34% for 2019 and 2020, and 20% for 2021–2024. At the beginning of 2019, the company had no deferred income taxes on its balance sheet. Taxable income for 2019 is $478,000. Taxable income is expected in all future years.

Your answer is partially correct. Try again. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019. (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.) Account Titles and Explanation Debit Credit

Your answer is partially correct. Try again. Indicate how deferred income taxes would be classified on the balance sheet at the end of 2019. Sarasota Inc. Balance Sheet December 31, 2019For the Year Ended December 31, 2019For the Quarter Ended December 31, 2019 Total Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal Long-term InvestmentsCurrent AssetsTotal Property, Plant and EquipmentTotal Stockholders' EquityTotal LiabilitiesIntangible AssetsOther AssetsProperty, Plant and EquipmentTotal Long-term LiabilitiesCurrent LiabilitiesStockholders' EquityLong-term InvestmentsNon-current AssetsTotal Liabilities and Stockholders' EquityNoncurrent LiabilitiesTotal Assets $

Answer 1

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