Long Company reported the following results for the year ended December 31, 2021, its first year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Long Company reported the following results for the year ended December 31, 2021, its first year of operations: 2021 $2,000,000 Income (per books before income taxes) Taxable income 3,200,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2022. What should Long Company record as a net deferred tax asset or liablity for the year ended December 31, 2021, assuming that the enacted tax rate is 30% for all years? $300,000 deferred tax asset 4 $360,000 deferred tax asset $360,000 deferred tax liability $300,000 deferred tax liability Long Company reported the following results for the year ended December 31, 2021, its first year of operations: 2021 $2,000,000 Income (per books before income taxes) Taxable income 3,200,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2022. What should Long Company record as a net deferred tax asset or liablity for the year ended December 31, 2021, assuming that the enacted tax rate is 30% for all years? $300,000 deferred tax asset 4 $360,000 deferred tax asset $360,000 deferred tax liability $300,000 deferred tax liability
Expert Answer:
Answer rating: 100% (QA)
Answers The computation of the net deferred tax asset or liability for th... View the full answer
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
Students also viewed these accounting questions
-
Selected financial statement data for Schmitzer Incorporated is shown below: Balance sheet: Inventories Income statement: Sales revenue Cost of goods sold 2024 Gross profit ratio Inventory turnover...
-
Rockwell Inc. reported the following results for the year ended June 30, 2014: Retained earnings, July 1, 2013.......... $3,900,000 Net income .................714,000 Cash dividends...
-
Suppose you are given the following set of data with three Boolean input variables a, b, and c, and a single Boolean output variable K. a bc K 1 0 1 1 1 1 1 1 1 1 1 1 1 1 0 01 For parts (a) and (b),...
-
Ullie Medical Supply is a retailer of home medical equipment. Last year, Ullies sales reve-nues totaled $ 6,800,000. Total expenses were $ 2,600,000. Of this amount, approximately $ 1,088,000 were...
-
Operating in a way that uses resources wisely and seeks stability and direction is known as _______.
-
Use Program17.m to find the natural frequencies of a fixed-fixed stepped beam, similar to the one shown in Fig. 12.12, with the following data: Cross sections of elements: \(1,2,3: 0.1 \mathrm{~m}...
-
Sprocket Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $905,000. Projected net cash inflows are as...
-
MARS Ltd acquired a business from BARS Ltd in exchange for land having a fair value of $600 000. At the date of acquisition, MARS took control of identifiable assets with a fair value of $840 000,...
-
A player plays a roulette game in a casino by betting on a single number each time. Because the wheel has 38 numbers, the probability that the player will win in a single play is 1/38. Each play of...
-
5. What is the output of the following program segment? linkedQueueType queue; queue. addQueue (10); queue. addQueue (20); cout < < queue.front () < < endl; queue.deleteQueue (); queue. addQueue (2...
-
After you view the "Marketing Concept, Marketing Orientation, CRM & CLV" video, answer the following questions: 1. What is the focus of all marketing activities, and why? 2. Discuss the basic...
-
What few key business-cultural aspects of your firm are important enough to you to make them a focus beyond profitability? How do these shape your business' mission and goals? What characteristics...
-
Carrico Advertising Inc. performs advertising services for several Fortune 500 companies. The following information describes Carrico's activities during the current year. a. At the beginning of the...
-
1. State the key features of the given polynomial functions using the chart below: Key Features f(x) = 3x + 4x4 f(x) = 2x- x-6x Domain Range X-intercept(s) Y-intercept End Behaviour Symmetry Even...
-
Presented below is information related to Vaughn Company. Cost Retail Beginning inventory $50,002 $63,500 Purchases 344,000 543,000 Markups 22,500 Markup cancellations 3,600 Markdowns 8,200 Markdown...
-
Given information below, check the safety of the machine (Refer to the CAT handbook): Machine: Track loader . Model: CAT 953D Bucket type: General purpose bare Bucket size: Use rated (nominal...
-
What is your assessment of the negotiations process, given what you have studied? What are your recommendations for Mr. Reed? You must justify your conclusions
-
Strong House Inc. had the following condensed statement of financial position at December 31, 2019: Strong House Inc. follows IFRS and chooses to classify dividends paid as financing activities and...
-
Mazur Corp. follows IFRS and began operations in 2020 and reported accounting income of $275,000 for the year. Mazur's CCA exceeded its book depreciation by $40,000. Mazur's tax rate for 2020 and...
-
ASPE does not permit the correction of an error to be accounted for using partial retrospective restatement or prospective restatement. However, IAS 8 does allow partial retrospective restatement or...
-
It has been stated that to lead people through the complex changes facing the health care industry, transformational leadership is required (i.e., leaders creating an environment in which staff can...
-
Deliberate the need for transformational or collaborative leadership in the next 5 years as the health care environment transforms as a result of industry reform.
-
If you were the director of a major department in a health care company, how important would each of the following activities be to you? Answer yes or no to indicate whether you would strive to...
Study smarter with the SolutionInn App