Prance, in Problem 12, reports $600,000 of pretax book net income in 2015. Prance’s book depreciation exceeds tax depreciation in this year by $20,000. Prance reports no other temporary or permanent book-tax differences. Assuming that the pertinent U.S. tax rate is 35% compute Prance’s total income tax expense, current income tax expense, and deferred income tax expense.
Answer to relevant QuestionsUsing the facts of Problem 14, determine the 2015 end-of-year balance in Prance’s deferred tax asset and deferred tax liability balance sheet accounts. In problem Prance, Inc., earns pretax book net income of $800,000 in ...Cortel, Inc., hopes to report a total book tax expense of $90,000 in the current year. This $90,000 expense consists of $160,000 in current tax expense and a $70,000 tax benefit related to the expected future use of an NOL ...Jaime, the CFO of BuildCo, Inc., has used ASC 740-30 (APB 23) to avoid reporting any U.S. deferred tax expense on $100 million of the earnings of BuildCo’s foreign subsidiaries. All of these subsidiaries operate in ...Continue with the results of Problem 35. Prepare the GAAP journal entries for Britton’s year 1 income tax expense. In problem Britton, Inc., an accrual basis C corporation, sells widgets on credit. Its book and taxable ...Based on the facts and results of Problems 41–43, determine Relix’s change in net deferred tax asset or net deferred tax liability for the current year. Provide the journal entry to record this amount. In problem Based ...
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