Mini, in Problem 16, reports $800,000 of pretax book net income in 2015. Mini did not deduct any bad debt expense for book purposes but did deduct $15,000 in bad debt expense for tax purposes. Mini records no other temporary or permanent differences. Assuming that the U.S. tax rate is 35%, compute Mini’s total income tax expense, current income tax expense, and deferred income tax expense.
Answer to relevant QuestionsUsing the facts of Problem 18, determine the 2015 end-of-year balance in Mini’s deferred tax asset and deferred tax liability balance sheet accounts. In problem Mini, in Problem 16, reports $800,000 of pretax book net ...Jill is the CFO of PorTech, Inc. PorTech’s tax advisers have recommended two tax planning ideas that will each provide $5 million of current-year cash tax savings. One idea is based on a timing difference and is expected ...HippCo and HoppCo operate in the same industry and report the following tax rate reconciliations in their tax footnotes. Compare and contrast the effective tax rates of these two companies. Willingham, Inc., an accrual basis C corporation, reports pretax book income of $1.6 million. At the beginning of the tax year, Willingham reported no deferred tax accounts on its balance sheet. It is subject to a 35% U.S. ...Based on the facts and results of Problems, provide the income tax foot-note rate reconciliation for Relix. In problem In addition to the temporary differences identified in Problems, Relix reported two permanent differences ...
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