Using the facts of Problem 49, determine the 2014 end-of-year balance in Prances deferred tax asset and
Question:
Using the facts of Problem 49, determine the 2014 end-of-year balance in Prance’s deferred tax asset and deferred tax liability balance sheet accounts.
Data From Problem 49:
Prance, Inc., earns pretax book net income of $800,000 in 2014. Prance acquires a depreciable asset in 2014, and first-year tax depreciation exceeds book depreciation by $80,000. Prance reports no other temporary or permanent book-tax differences. Assuming that the relevant U.S. tax rate is 35%, compute Prance’s total income tax expense, current income tax expense, and deferred income tax expense.
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Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th Edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
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