Culver Company has the following two temporary differences between its income tax expense and income taxes payable.

2020 2021 2022
Pretax financial income $873,000 $866,000 $947,000
Excess depreciation expense on tax return (29,400 ) (39,000 ) (9,600 )
Excess warranty expense in financial income 20,000 9,900 8,300
Taxable income $863,600 $836,900 $945,700
The income tax rate for all years is 20%.

Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022.

Journal entries

Explanation:

The journal entries are as follows

For 2020

Income tax expense $174,600

Deferred tax asset  $4,000         ($20,000 × 20%)

           To Income tax payable   $172,720        ($863,600 × 20%)

           To Deferred tax liability   $5,880           ($29,400 × 20%)

(Being the income tax expense, deferred income taxes, and income taxes payable is recorded)

For 2021

Income tax expense $173,200

Deferred tax asset  $1,980      ($9,900 × 20%)

           To Income tax payable   $167,380        ($836,900 × 20%)

           To Deferred tax liability   $7,800          ($39,000 × 20%)

(Being the income tax expense, deferred income taxes, and income taxes payable is recorded)

For 2020

Income tax expense $174,600

Deferred tax asset  $1,660       ($8,300 × 20%)

           To Income tax payable   $189,140        ($945,700 × 20%)

           To Deferred tax liability   $1,920        ($9,600 × 20%)

(Being the income tax expense, deferred income taxes, and income taxes payable is recorded)

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi