The differences between the accounting profit before taxes and the taxable profit during the year 2021 were
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Question:
The differences between the accounting profit before taxes and the taxable profit during the year 2021 were the following:
($ in millions) | |||||
Countable income before taxes | ps | 300 | |||
permanent difference | (24) | ||||
276 | |||||
temporary difference | (16) | ||||
taxable income | ps | 260 |
The cumulative temporary difference at the end of 2021 is $40 million (also the future taxable amount). The enacted tax rate is 25%.
What is the deferred tax asset or liability that will be reported on the balance sheet?
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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