The following information relates to Riverbed Inc.: Temporary difference, giving rise to future taxable amounts...
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The following information relates to Riverbed Inc.: Temporary difference, giving rise to future taxable amounts Temporary difference, giving rise to future deductible amounts At July 1, 2019 $89,000 29,000 At June 30, 2020 $160,000 86,000 Accounting income for the year ended June 30, 2020 was $133,000. No permanent differences existed during the fiscal year. The company was expected to operate profitably in the future. The tax rate was 15% for the current and future years. Riverbed Inc. follows IFRS. Your answer is correct. Calculate the amount of taxable income for 2020. Taxable income, 2020 $ 119,000 eTextbook and Media List of Accounts Attempts: 2 of 3 used Your answer is correct. Prepare the journal entries to record income taxes for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.). Debit Credit Account Titles and Explanation Current Tax Expense 17,850 17,850 Income Tax Payable (To record current tax expense.) Deferred Tax Expense 2,100 Deferred Tax Liability 2,100 (To record deferred tax expense.) (c) Calculate the effective rate for 2020. % Effective rate, 2020
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