Question: 1 18 In 2018 X company reported net income $80,000, during the year 2018 there is one temporary difference reduce the net income by

1 18 In 2018 X company reported net income $80,000, during theyear 2018 there is one temporary difference reduce the net income by

1 18 In 2018 X company reported net income $80,000, during the year 2018 there is one temporary difference reduce the net income by $20,000, this difference will reversed in 2019 by $8,000 and in 2020 by $12,000, the taxable income in 2019 was $100,000 and in ?2020 was $120,000 and applied tax rate is 20%, journalize the entry in 2019 .Debit Income tax expense $18,400, Credit income tax payable $20,000, Debit deferred tax liabilty $1,600.a O Debit income tax expense $16,000, Credit income tax payable $12,000, Credit deferred tax liabilty $4,000.b O .Debit Income tax expense $12,000, Credit income tax payable $16,000, Credit deferred tax asset $4,000.c O 19 1 In 2018 X company reported net income $80,000, during the year 2018 there is one temporary difference reduce the net income by $20,000, this difference will reversed in 2019 by $8,000 and in 2020 by $12,000, the taxable income in 2019 was $100,000 and in ?2020 was $120,000 and applied tax rate is 20%, compute Income tax payable in 2018 $12,000.a O $16,000.b O $20,000.c O

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!