Quinn Company reported a net deferred tax asset of $6,300 in its December 31, 20X0, balance sheet.
Question:
Quinn Company reported a net deferred tax asset of $6,300 in its December 31, 20X0, balance sheet. For 20X1, Quinn reported pre-tax financial statement income of $300,000. Temporary differences of $100,000 resulted in taxable income of $200,000 for 20X1. At December 31, 20X1, Quinn had net cumulative temporary differences (related to future taxable income) of $70,000. The income tax rate is 21%.
Required:
In its December 31, 20X1, income statement, what should Quinn report as the deferred portion of income tax expense?
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Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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