Mini, Inc., earns pretax book net income of $750,000 in 2014. Mini deducted $20,000 in bad debt expense for book purposes. This expense is not yet deductible 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 QuestionsMini, 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 ...Lily Enterprises acquires another corporation. This acquisition created $30 million of goodwill for both book and tax purposes. The $30 million in goodwill is amortized over 15 years for tax purposes but is not deductible ...LawnCo and TreeCo operate in the same industry, and both report a 30% effective tax rate. Their book income and current, deferred, and total tax expense are reported below. ShrubCo is a competitor of both of these companies. ...Continue with the results of Problem 37. Determine Rubio’s income tax expense and GAAP income for the year. In problem Rubio, Inc., an accrual basis C corporation, reports the following amounts for the tax year. The ...Based on the facts and results of Problems 41–46, calculate Relix’s total provision for Income tax expense reported in its financial statements and its book net income after tax. In problem In addition to the temporary ...
Post your question