Problem 16-2 Temporary Difference; Determine Deferred Tax Amount For Three Years [LO16-2] Times-Roman Publishing Company Reports The Following Amounts In Its First Three Years Of Operation ( In 000s) Pretax Accounting Income Taxable Income $350 390 $330 340 2020 320 360 The Difference Between Pretax Accounting Income And Taxable Income Is Due To Subscription

 

I just need help with the last one: 2020!

 

Problem 16-2 Temporary difference; determine deferred tax amount for three years [LO16-2] Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in 000s) 2018 Pretax accounting income Taxable income $350 390 2019 $330 340 2020 $320 360 The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when the performance obligation is satisfied. The income tax rate is 40% each year. Times-Roman anticipates profitable operations in the future. Required: 1. What is the balance sheet account for which a temporary difference is created by this situation? 2. For each year, indicate the cumulative amount of the temporary difference at year-end. (Enter your answers in thousands.) 3. Determine the balance in the related deferred tax account at the end of each year. Is it a deferred tax asset or a deferred tax liability? (Enter your answers in thousands.) 1. What is the balance sheet account for which a temporary difference is created by this situation? Deferred subscription revenue December 31 2018 2019 2020 2. Temporary difference $ 40 $ 50 3. Deferred tax asset $ 16 $ 20