The pretax financial income of Indigo Company differs from its taxable income throughout each of 4...

The pretax financial income of Indigo Company differs from its taxable income throughout each of 4 years as follows. Year Pretax Financial Income Taxable Income Tax Rate 2020 $310,000 $183,000 35 % 2021 308,000 231,000 20 % 2022 345,000 279,000 20 % 2023 408,000 535,000 20 % Pretax financial income for each year includes a nondeductible expense of $29,900 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2020.

Collapse question part (a) Prepare journal entries to record income taxes in all 4 years. Assume that the change in the tax rate to 20% was not enacted until the beginning of 2021.

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ekkarill92 answered 1 year ago

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