The following information relates to Ballard Company for there year ended December 31, 2019. For 2019,...

 

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The following information relates to Ballard Company for there year ended December 31, 2019. For 2019, Ballard reported pre-tax financial income of $250,000. The tax rate is 45% for 2019 and 40% for all later years. Ballard expects to have taxable income in future years sufficient to use any possible deferred tax assets that might be generated in 2019. The effects on future tax returns of temporary differences existing at December 31, 2019, are summarized as follows. Future taxable and (deductible) amounts: Installment sales Depreciation Unearned rent 2020 2021 Future Years 2022 $ 32,000 $32,000 6,000 6,000 (50,000) (50,000) $32,000 2023 2024 6,000 $ 6,000 $ 6,000 Total $ 96,000 30,000 (100,000) What amount should Ballard report as income tax expense for the year ended December 31, 2019? The following information relates to Ballard Company for there year ended December 31, 2019. For 2019, Ballard reported pre-tax financial income of $250,000. The tax rate is 45% for 2019 and 40% for all later years. Ballard expects to have taxable income in future years sufficient to use any possible deferred tax assets that might be generated in 2019. The effects on future tax returns of temporary differences existing at December 31, 2019, are summarized as follows. Future taxable and (deductible) amounts: Installment sales Depreciation Unearned rent 2020 2021 Future Years 2022 $ 32,000 $32,000 6,000 6,000 (50,000) (50,000) $32,000 2023 2024 6,000 $ 6,000 $ 6,000 Total $ 96,000 30,000 (100,000) What amount should Ballard report as income tax expense for the year ended December 31, 2019?

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Answer5 Income tax expense for December 312019 Calculation Pretax fina... View the full answer