In Figland Companys first year of operations (2014), the company had pre-tax book income of $500,000 and
Question:
2015 . $100,000
2016 . $200,000
The enacted income tax rate for these years is 30%. Figland believes there is a high likeli-hood that one-third of the tax benefit associated with this future deductible amount will not be realized.
Required:
Compute the amount of deferred tax asset and related valuation allowance that would be reported in Figland’s 2014 tax note.
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Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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