Reference no: EM132493761

Problem - Bramble Corporation reports the following amounts in its first three years of operations.

	2020	2021	2022
Taxable income	$242,800	$124,700	$126,600
Accounting income	158,500	139,800	130,900

The difference between taxable income and accounting income is due to one reversing difference. The tax rate is 30% for all years and the company expects to continue with profitable operations in the future.

For each year, identify the amount of the reversing difference originating or reversing during that year, and indicate the amount of the temporary difference at the end of the year.

Indicate the balance in the related deferred tax account at the end of each year and identify it as a deferred tax asset or liability.

Prepare the journal entries at the end of all three years to record current and deferred taxes.