Company A started their business in the current year and has book (GAAP) income before taxes (EBT)
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Question:
Company A started their business in the current year and has book (GAAP) income before taxes (EBT) of $1.5M. It reports the following book-tax differences: Tax depreciation exceeds GAAP depreciation by $150,000 Life insurance proceeds of 700,000 Unrealized loss on marketable securities of $400,000 Penalties & fines of $50,000 Salaries & wages paid in excess of $1M of $250,000 Assuming a tax rate of 21%, determine the following:
- Taxable income:
- Current tax liability:
- Deferred tax liability or asset:
- Income Tax Expense:
- Effective tax rate:
Related Book For
Income Tax Fundamentals 2015
ISBN: 9781305177772
33rd edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill
Posted Date: