The following information is available for PVP Co. at the end of 2014: Pretax financial income $2,500,000
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Question:
The following information is available for PVP Co. at the end of 2014:
Pretax financial income | $2,500,000 |
Warranty expenses deducted in financial income in excess of amounts deducted for taxable income | $1,000,000 |
Depreciation deducted for tax purposes in excess of depreciation deducted for financial statement purposes | 2,000,000 |
Assume that the income tax rate is 30%. Show calculations for 2014 (a) taxable income and current. Income taxes payable (b) deferred tax asset, and (c) deferred tax liability.
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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