Problem
The following information are for Simba Corporation at January 1, 2020:
Deferred tax liability, January 1, 2020: $50000, Deferred tax asset, January 1, 2020: $22000,
Book income before tax: $110000, Deductible depreciation expense in excess of book causing a cumulative temporary difference of $240,000.Prepaid rental income taxable this year (but recorded as deferred revenue for book) causing a cumulative taxable amount of $85,000 this year.A fine imposed by the EPA in an amount of $95,000 that was expensed for financial reporting purposes but not permitted as a deduction for tax purposes.
The income tax rate is 30% for all years
How to prepare a schedule computing pretax financial (book) income, current income tax payable, deferred income tax payable, deferred income tax asset, and total provision for income tax expense for 2020.