The following information relates to Sweet Inc.:

		At July 1, 2019			At June 30, 2020
Temporary difference, giving rise to future taxable amounts		$83,000			$158,000
Temporary difference, giving rise to future deductible amounts		34,000			82,000

Accounting income for the year ended June 30, 2020 was $134,000. No permanent differences existed during the fiscal year. The company was expected to operate profitably in the future. The tax rate was 16% for the current and future years. Sweet Inc. follows IFRS.

 

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Calculate the amount of taxable income for 2020. Taxable income, 2020 $ SHOW LIST OF ACCOUNTS LINK TOΤΕXT LINK TO TEXT LINK TO TEXT Prepare the journal entries to record income taxes for 2020. (Credit account titles are autor amounts.). Account Titles and Explanation Debit Credit (To record current tax expense.) (To record deferred tax expense.) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Calculate the effective rate for 2020. Effective rate, 2020 Calculate the amount of taxable income for 2020. Taxable income, 2020 $ SHOW LIST OF ACCOUNTS LINK TOΤΕXT LINK TO TEXT LINK TO TEXT Prepare the journal entries to record income taxes for 2020. (Credit account titles are autor amounts.). Account Titles and Explanation Debit Credit (To record current tax expense.) (To record deferred tax expense.) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Calculate the effective rate for 2020. Effective rate, 2020

Answer rating: 100% (QA)

Answer1 Taxable Income 2020 107000 Calculation Pretax Accounting Income 134000 Les... View the full answer