The following information is available for Remmers corporaton for 2020.
1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This difference will reverse in equal amounts of $30,000 over the years 2021–2024.
2. Interest received on municipal bonds was $10,000.
3. Rent collected in advance on January 1, 2020, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, 2020, for book purposes.
4. The tax rates are 20% for 2020 and 17% for 2021 and subsequent years.
5. Income taxes of $160,000 are due per the tax return for 2020.
6. No deferred taxes existed at the beginning of 2020.
Compute taxable income for 2014.
Taxable income for 2014 $
Compute pretax financial income for 2014.
Pretax financial income for 2014 $
Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2014 and 2015. Assume taxable income was $989,400 in 2015.
Date Account Titles and Explanation Debit Credit
2014
2015
Prepare the income tax expense section of the income statement for 2014, beginning with "Income before income taxes."
Remmers Corporation
Income Statement (Partial)
Year ended December 31, 2014
$
$