Lakeshore Company reported the following selected information for the current year: Accounting income before tax Interest...
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Lakeshore Company reported the following selected information for the current year: Accounting income before tax Interest income on tax-exempt municipal bonds Depreciation claimed on the tax return in excess of financial depreciation Carrying amount of depreciable asset in excess of tax basis Warranty expense reported on the income statement Actual warranty expenditures Income tax rate 9,700,000.00 350,000.00 500,000.00 800,000.00 200,000.00 50,000.00 25% At the beginning of current year, the entity reported deferred tax asset at zero and deferred tax liability at P75,000. Questions: 1. What amount should be reported as current tax expense for the current year? 2. What amount should be reported as total tax expense for the current year? 3. What amount should be reported as deferred tax liability at year-end? 4. What amount should be reported as deferred tax asset at year-end? Lakeshore Company reported the following selected information for the current year: Accounting income before tax Interest income on tax-exempt municipal bonds Depreciation claimed on the tax return in excess of financial depreciation Carrying amount of depreciable asset in excess of tax basis Warranty expense reported on the income statement Actual warranty expenditures Income tax rate 9,700,000.00 350,000.00 500,000.00 800,000.00 200,000.00 50,000.00 25% At the beginning of current year, the entity reported deferred tax asset at zero and deferred tax liability at P75,000. Questions: 1. What amount should be reported as current tax expense for the current year? 2. What amount should be reported as total tax expense for the current year? 3. What amount should be reported as deferred tax liability at year-end? 4. What amount should be reported as deferred tax asset at year-end?
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Answer rating: 100% (QA)
1 Current tax expense for the current year Accounting income before tax 9700000 Less Interest income ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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