Rayben Glasses, Inc., reported a pre-tax accounting income of $600,000 in 2016, being its first year of
Question:
Rayben Glasses, Inc., reported a pre-tax accounting income of $600,000 in 2016, being its first year of operation. It further determined that the excess tax amortization it received in 2016 will result in equal net taxable amounts in each of the next three years (i.e., reversal of $60,000 per year), 2017 to 2019. Enacted tax rates (all known at the end of 2016) are 40% in 2016, 35% in 2017 and 2018, and 30% in 2019. There were no other taxable differences.
1. The total amount reported by Rayben on its balance sheet as December 31, 2017, using ASPE, for this taxable difference would be a
Select one:
a. Non-current Liability $180,000
b. Non-current Liability $72,000
c. Non-current Asset $21,000
d. Non-current Asset $29,000
e. Non-current Liability $39,000
2. What would be the current tax expense for 2016?
Select one:
a. $168,000
b. $72,000
c. $240,000
d. $210,000
e. None of the above.
Expert Answer:
Part 1The correct answer is e Non Current liability 39000 Explaination since excess am... View the full answer
