Chapter 18 Problems Marcus Co. Data for tax deferral analysis and reporting 2021 - 2023 The temporary tax difference is due to a $70,000 sale that could be recognized for GAP purposes in 2021 but it had to be recognized for tax purposes on a prorata basis through 2023 Using the materials in the book and notes, fill in the following tables and determine the following: a. Difference in GAAP and Tax Income and related taxes for 2021 - 2023 Required: b. The amount of taxes payable and tax expense for 20212023 c Complete the appropriate journal entries for 2021 - 2023 with the help of the TAccount that is provided d. Provide the disclosures of tax and tax deferral that would appear in the balance sheet and income statement. Notes This problem is based on an understanding that total income over the three years will be the same under GAAP and Tax. The tables are designed in the book to give you the three parts of the journal entry Tax Expense, Taxes payable and the specific entry related to the deferred taxes account. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Basic Income Statement Information } \\ \hline & & 2021 & & 2022 & & 2023 \\ \hline GAAP Revenues & & 600000 & & 600000 & & 600000 \\ \hline Tax Revenues & & 530000 & & 650000 & & 620000 \\ \hline All other expenses for the year & & 300000 & & 300000 & & 300000 \\ \hline Tax Rate & & 40% & & 40% & & 40% \\ \hline \end{tabular} Required: Calculate Income for all three years under GAAP Required: Calculate Income for all three years under Tax Law Required: Calculate the Tax Difference for each year Required: Using the information from the Tax differences above, give the deferred tax journal entry for each year and makesure vou not if it is a deferred Tax Asset or Defreed Tax Liabilitv Required: Using the Net Differences in the application for book and tax net basis' compute the deferred tax liability or asst in a difference manner Chapter 18 Problems Marcus Co. Data for tax deferral analysis and reporting 2021 - 2023 The temporary tax difference is due to a $70,000 sale that could be recognized for GAP purposes in 2021 but it had to be recognized for tax purposes on a prorata basis through 2023 Using the materials in the book and notes, fill in the following tables and determine the following: a. Difference in GAAP and Tax Income and related taxes for 2021 - 2023 Required: b. The amount of taxes payable and tax expense for 20212023 c Complete the appropriate journal entries for 2021 - 2023 with the help of the TAccount that is provided d. Provide the disclosures of tax and tax deferral that would appear in the balance sheet and income statement. Notes This problem is based on an understanding that total income over the three years will be the same under GAAP and Tax. The tables are designed in the book to give you the three parts of the journal entry Tax Expense, Taxes payable and the specific entry related to the deferred taxes account. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Basic Income Statement Information } \\ \hline & & 2021 & & 2022 & & 2023 \\ \hline GAAP Revenues & & 600000 & & 600000 & & 600000 \\ \hline Tax Revenues & & 530000 & & 650000 & & 620000 \\ \hline All other expenses for the year & & 300000 & & 300000 & & 300000 \\ \hline Tax Rate & & 40% & & 40% & & 40% \\ \hline \end{tabular} Required: Calculate Income for all three years under GAAP Required: Calculate Income for all three years under Tax Law Required: Calculate the Tax Difference for each year Required: Using the information from the Tax differences above, give the deferred tax journal entry for each year and makesure vou not if it is a deferred Tax Asset or Defreed Tax Liabilitv Required: Using the Net Differences in the application for book and tax net basis' compute the deferred tax liability or asst in a difference manner