Grace Corporation's pretax financial income is $600,000 and taxable income is $550,000 for the year 2020. Its beginning deferred tax liability account has a balance of $75,000. Its cumulative temporary differences for year-end 2020 are equal to $300,000 and will reverse and result in taxable amounts as follows: Year Taxable Amount 2021 $100,000 2022 $ 75,000 2023 $125,000 The tax rate is 30% for all years. 

Required:

(i) Calculate the taxes payable for the year 2020 

(ii) Calculate the deferred tax liability for the year 2020 

(iii) Calculate the total tax expense for 2020 

(iv) Prepare the journal entry to record the tax expense for 2020 

(v) Prepare the income statement presentation of the tax amount

Answer rating: 100% (QA)

Taxes payable Taxable income Current tax rate Current tax expense 550000 a 30b 165000 ... View the full answer