In 2022, Demeter, Inc. reported depreciation expense of $1,279,000 and depreciation for tax purposes of $1,534,800. This was the only temporary difference between GAAP and tax and it will reverse equally over the next three years. Assume that the enacted income tax rates are 25% for 2022, 25% for 2023 and 30% for 2024 and 2025. What will Demeter, Inc. report as a deferred tax liability on is 2022 balance sheet?

Hagler Co. reports a net operating loss for 2023 of $2,194,000. Last year the company reported taxable income of $549,000 and in 2021 the company reported taxable income of $1,316,000. If the tax team used the comeback provision, what will be the company's deferred tax asset for the NOL assuming tie tax rate for 2021-2023 was 25% and the estimated future tax rate is 30%?

Answer rating: 100% (QA)

For Demeter Inc To calculate the deferred tax liability we need to determine the temporary differenc... View the full answer