Differences between pretax accounting income and taxable income were as follows during 2021: ($ in millions) Pretax
Question:
Differences between pretax accounting income and taxable income were as follows during 2021:
($ in millions)
Pretax accounting income.....................................$ 300
Permanent difference...............................................(24)
.....................................................................................276
Temporary difference...............................................(16)
Taxable income......................................................$ 260
The cumulative temporary difference as of the end of 2021 is $40 million (also the future taxable amount). The enacted tax rate is 25%. What is the deferred tax asset or liability to be reported in the balance sheet?
Step by Step Answer:
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas