Prance, Inc., earned pretax book net income of $1,637,000 in 2020. Prance acquired a depreciable asset...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Prance, Inc., earned pretax book net income of $1,637,000 in 2020. Prance acquired a depreciable asset that year, and first-year tax depreciation exceeded book depreciation by $163,700. Prance reported no other temporary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21%, and Prance earned an after-tax rate of return on capital of 8%. Enter below Prance's 2020 deferred tax expense and any deferred tax asset or liability. If required, round your answer to nearest whole value. Balance Sheet Deferred tax liability Income Statement Deferred tax expense Prance's total tax expense will consist of the following: Current tax expense Deferred tax expense Total tax expense Prance, Inc., earned pretax book net income of $1,637,000 in 2020. Prance acquired a depreciable asset that year, and first-year tax depreciation exceeded book depreciation by $163,700. Prance reported no other temporary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21%, and Prance earned an after-tax rate of return on capital of 8%. Enter below Prance's 2020 deferred tax expense and any deferred tax asset or liability. If required, round your answer to nearest whole value. Balance Sheet Deferred tax liability Income Statement Deferred tax expense Prance's total tax expense will consist of the following: Current tax expense Deferred tax expense Total tax expense
Expert Answer:
Related Book For
South Western Federal Taxation 2018 Essentials Of Taxation Individuals And Business Entities
ISBN: 9781337386173
21st Edition
Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
Posted Date:
Students also viewed these accounting questions
-
Prance, Inc, earns pretax book net Income of $1,565,000 in 2018. Prance acquires a depreciable asset in 2018, and first-year tax depreciation exceeds book depreciation by $156,500. In 2019, Prance...
-
Prance, Inc., earns pretax book net income of $800,000 in 2016. Prance acquires a depreciable asset that year, and first-year tax depreciation exceeds book depreciation by $80,000. Prance reported no...
-
Prance, in Problem 3, reports $600,000 of pretax book net income in 2019. Prance's book depreciation exceeds tax depreciation that year by $20,000. Prance reports no other temporary or permanent...
-
Dew Company employs standard costing and applies overhead based upon machine labor hours. Monthly production is scheduled at 500 units. Standard and actual data for the month is as follows: Standards...
-
In December 2012, Cardozo Company established its predetermined overhead rate for jobs produced during year 2013 by using the following cost predictions: overhead costs, $ 750,000, and direct labor...
-
The International Canine Academy raises and trains Siberian sled dogs and dancing French poodles. Breeders can supply the academy with at most 20 poodles and 15 Siberian huskies each year. Each...
-
When to use a settlement brochure?
-
Discuss the impact, both positive and negative, of termination on the project team members. How might the negative impact be lessened?
-
Starbucks is all over now, but they started in Seattle and expanded from there. Imagine you are on the board of Starbucks at the time it was contemplating horizontal integration to enter New England....
-
a. What is the maximum amount that Roy should advise his client to withdraw on her 60th birthday? If she lives until age 90, how much should the client expect to leave to her heirs? b. Roy is now...
-
Part A Asquare wire loop 140 emon each side cantes a dockue cument ot5.00 A Find the magitude of the magnetic feld ats center dua to the four 1.30mm ie segsents at the midpoint of each side. Express...
-
What does it mean when a bond exhibits negative convexity?
-
a. What does the duration of a bond measure? b. What does a bonds convexity measure? c. Is convexity a superior measure to duration?
-
What is meant by a shifting interest mechanism?
-
Explain how scenario analysis works?
-
Duration is only an accurate measure for very small changes in yield and assumes the yield shifts in parallel. Critically evaluate this statement.
-
Assume that the General Fund for the city of Bruderer had cash collections of $11,108,900 associated with property taxes as of June 30, 20X8. The levy for the fiscal year ending June 30, 20X8, net of...
-
In the operation of an automated production line with storage buffers, what does it mean if a buffer is nearly always empty or nearly always full?
-
State A enjoys a prosperous economy, with high real estate values and compensation levels. State B's economy has seen better days-property values are depressed, and unemployment is higher than in...
-
Adelyn has a tentative general business credit of $42,000 for the current year. Her net regular tax liability before the general business credit is $107,000, and her tentative minimum tax is $88,000....
-
Jerry Jeff Keen, the CFO of Boots Unlimited, a Texas corporation, has come to you regarding a potential restructuring of business operations. Boots has long manufactured its western boots in plants...
-
Determine the slope at \(A\) and the displacement of at point \(C\) of the simply supported beam. The modulus of elasticity of the wood is \(E=10 \mathrm{GPa}\). A 3 kN 3 kN -1.5 m-1.5 m- 3 m. 100 mm...
-
The simply supported beam is made of A-36 steel and is subjected to the loading shown. Determine the displacement of its center \(C\). Take \(I=0.1457\left(10^{-3} ight) \mathrm{m}^{4}\). 20 kN 4...
-
The \(\mathrm{W} 10 \times 30\) cantilever beam is made of A-36 steel and is subjected to unsymmetrical bending caused by the applied moment. Determine the displacement of the centroid at its end...
Study smarter with the SolutionInn App