Vaughn Corporation has one temporary difference at the end
of 2020 that will reverse and cause taxable amounts of
$58,600 in 2021, $64,100 in 2022, and $69,000 in
2023. Vaughn’s pretax financial income for 2020 is $289,500,
and the tax rate is 30% for all years. There are no deferred
taxes at the beginning of 2020.
(a)
Prepare the journal entry to record income tax expense, deferred
income taxes, and income taxes payable for
2020. (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
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
