The records of Lane Corporation show the following pretax GAAP income for the past years.
The income tax rate is The company had the following differences between GAAP basis and tax basis income.
For GAAP purposes, installment sales receivable is $ on December of Year On the tax return, $ will be recognized each year, Year through Year as cash is collected.
For GAAP purposes, warranty expenses of $ are accrued in Year On the tax return, $ will be deducted each year, Year through Year as expenditures are made related to warranties.
The company also recorded interest revenue of $ each year on municipal bonds, which is not taxable.
Required
Financial Statement Presentation
a Prepare schedules to compute the deferred tax balances on December of Year Year Year and Year
Note: Do not use negative signs with your answers.
b Compute the increase to income tax payable on December of Year Year Year and Year
Note: Round each amount to the nearest whole dollar. Use the rounded amounts for later calculations.
