Question 7 Indigo Company has the following two temporary differences between its income tax expense...
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Question 7 Indigo Company has the following two temporary differences between its income tax expense and income taxes payable. Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income 2020 2021 2022 $816,000 $925,000 $930,000 (30,200) (40,900) (10,200) 20,800 9,700 8,000 $806,600 $893,800 $927,800 The income tax rate for all years is 20%. (a) Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Credit Debit 2020 2021
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