At the end of 2020, its first year of operations, X Corp. prepared the following reconciliation between
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At the end of 2020, its first year of operations, X Corp. prepared the following reconciliation between pre-tax accounting income and taxable income: Pre-tax accounting income $ 800,000 Estimated lawsuit expense 400,000 Excess CCA for tax purposes (900,000) Taxable income $ 300,000 The estimated lawsuit expense of $ 400,000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $ 300,000 in each of the next three years. The income tax rate is 25% for all years. X adheres to IFRS requirements. The current income tax payable is
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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