Question

Bandung Corporation began 2020 with a $46,000 balance in the Deferred Tax Liability account. At the end of 2020, the related cumulative temporary difference amounts to $350,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $525,000, the tax rate for all years is 20%, and taxable income for 2020 is $405,000.

Compute income taxes payable for 2020.

Answer 1

$81,000

Step-by-step explanation:

Bandung Corporation income taxes payable for 2020.

Taxable income for 2020 $405,000

Enacted tax rate 20%

Income tax payable for 2020 $81,000

Therefore the income taxes payable for 2020 is $81,000