Question: At December 31, 2021, Vermont Industries reported three temporary differences between accounting and taxable income. Vermont had $ 25,000 of future deductible amounts resulting from
At December 31, 2021, Vermont Industries reported three temporary differences between accounting and taxable income. Vermont had $ 25,000 of future deductible amounts resulting from accrued warranty liabilities. Vermont offers customers a one year Warranty on its products. Vermont had $55,000 in future taxable amounts associated with depreciation on property and equipment, and $15,000 in future taxable amounts associated with prepaid expenses that expire in 2022. No temporary differences existed at December 31, 2020. The income tax rate is 40%. Vermont would report the following amount() related to deferred taxes on its year end December 31, 2021 balance sheet A): $18,000 net noncurrent deferred tax liability. B ) $4,000 current deferred tax asset and \$22,0 noncurrent deferred tax liability C). $10,000 noncurrent deferred tax asset and $28,000 noncurrent deferred tax liability. D) $4,000 noncurrent deferred tax asset and $22,000 noncurrent deferred tax liability
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