Concord Corporation purchased equipment very late in 2020. Based on generous capital cost allowance rates provided in the Income Tax Act, Concord Corporation claimed CCA on its 2020 tax return but did not record any depreciation because the equipment was being tested. This temporary difference will reverse and cause taxable amounts of $25,900 in 2021, $32,100 in 2022, and $41,900 in 2023. Concord’s accounting income for 2020 is $221,800 and the tax rate is 30% for all years. There are no deferred tax accounts at the beginning of 2020.

Calculate the deferred tax balance on December 31, 2020.

Deferred tax select an option asset liability

$enter a dollar amount

List of Accounts

Calculate taxable income and income tax payable for 2020.

Taxable income		$enter a dollar amount
Income tax payable		$enter a dollar amount

List of Accounts

Prepare the journal entries to record income taxes for 2020. (Credit account titles are automatically indented when the 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.)

Year	Account Titles and Explanation	Debit	Credit
2020	enter an account title to record current tax expense	enter a debit amount	enter a credit amount
	enter an account title to record current tax expense	enter a debit amount	enter a credit amount
	(To record current tax expense)
2020	enter an account title to record deferred tax expense	enter a debit amount	enter a credit amount
	enter an account title to record deferred tax expense	enter a debit amount	enter a credit amount
	(To record deferred tax expense)

Answer rating: 100% (QA)

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