Two independent situations are described below. Each involves future deductible amounts and/ or future tax-able amounts produced
Question:
Two independent situations are described below. Each involves future deductible amounts and/ or future tax-able amounts produced by temporary differences:
The enacted tax rate is 40% for both situations. Determine the deferred tax asset balance at year- end.
Transcribed Image Text:
Situation Taxable income Amounts at yearend: Future deductible amounts Future taxable amounts Balances at beginning of year: Deferred tax asset Deferred tax liability 2 $40,000 $80,000 10,000 5,000 5,000 S1,000 S 4,000 1,000
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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