The records of Cross Corporation provided the following reconciliation between taxable income and pretax GAAP income.

- The depreciation adjustment results from a difference between the GAAP basis and tax basis of depreciable equipment.

- The bad debt expense adjustment results from a difference between the GAAP basis and tax basis of net accounts receivable.

- The deferred tax accounts have a zero balance at the start of 2020. Tax rate is \(25 \%\).

Required

a. Record the income tax journal entry on December 31, 2020.

b. Record the income tax journal entry on December 31, 2021.

c. Record the income tax journal entry on December 31, 2022.

d. Record the income tax journal entry on December 31, 2023.

e. Prepare the income tax section of the income statement for 2020 and provide the disclosure of current and deferred tax expense.

f. Indicate the deferred income tax amount that would be recognized on the balance sheet at December 31, 2020.

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2020 2021 2022 2023 Taxable income......... Depreciation expense. Bad debt expense.. $60,000 $80,000 $85,000 $75,000 15,000 (5,000) (5,000) (5,000) (20,000) (10,000) (18,000) 25,000 Pretax GAAP income $55,000 $65,000 $62,000 $95,000