Winkerbean Industries began operations in 2021. The following information pertains to Winkerbean for the year ended 12/31/2021:
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Question:
Winkerbean Industries began operations in 2021. The following information pertains to Winkerbean for the year ended 12/31/2021:
| Taxable Income Calculations: | 2021 |
| Revenues less expenses (excluding temporary differences below) | $988,000 |
| Deductible Depreciation | (120,000) |
| Deductible Warranty Expense | (18,000) |
| Taxable Income | $850,000 |
| Pre-tax Financial Income Calculations: | 2021 |
| Revenues less expenses (excluding temporary differences below) | $988,000 |
| Depreciation Expense | (78,000) |
| Warranty Expense | (33,000) |
| Pre-tax Financial Income | $877,000 |
Assuming Winkerbean expects a tax rate of 30% for all years and that both temporary differences above will eventually true up, what will be Winkerbean's total income tax expense for the year ended 12/31/2021(i.e., the net of current income tax expense and deferred income tax expense)?
Expert Answer:
To calculate Winkerbeans total income tax expense for the year ended 12312021 we need to determine b... View the full answer
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