At December 31, 2019, Chai Inc. had a deferred tax asset of $40,000. At December 31, 2020,
Question:
At December 31, 2019, Chai Inc. had a deferred tax asset of $40,000. At December 31, 2020, the deferred tax asset is $62,000. The corporation's 2020 current tax expense is $70,000. What amount should Chai report as total 2020 income tax expense? Prepare the journal entries to record income taxes for 2020.
Step by Step Answer:
Current tax expense for 2020 70000 Deferred tax benefit for 2020 Deferred tax asset 12312020 ...View the full answer
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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