Differences between pretax accounting income and taxable income were as follows during 2024: The cumulative temporary difference

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Differences between pretax accounting income and taxable income were as follows during 2024:

The cumulative temporary difference as of the end of 2024 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?

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Intermediate Accounting

ISBN: 9781264134526

11th Edition

Authors: David Spiceland

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Question Posted: Aug 24, 2022 04:01 AM

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Differences between pretax accounting income and taxable income were as follows during 2024: The cumulative temporary difference

Question:

Pretax accounting income Permanent difference Temporary difference Taxable income ($ in millions) $300 (24) 276 (16) $260

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Since the cumulative temporary difference between pretax accounting income and taxable income ...View the full answer

Intermediate Accounting

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