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Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting Income for 2017-2020 are as follows: 2017 2018 2019 2020 Service Revenue $741,000 850,000 815,000 800,000 Collections $716,000 855,000 795,000 820,000 Pretax Accounting Income $290,000 355,000 325,000 305,000 There are no differences between accounting Income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%. (Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2017-2020.) Required: 1. Prepare the appropriate Journal entry to record Alsup's 2018 Income taxes, Alsup's 2019 Income taxes and Alsup's 2020 Income taxes. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. Enter your answers in thousands.) Answer is complete but not entirely correct. No Event General Journal Credit Income tax expense Deferred tax liability Debit 142,000 X 2.000 Income tax payable 144.000 X

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