Using the facts of Problem 17, determine Minis 2021 deferred tax assets and liabilities, deferred tax benefit

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Using the facts of Problem 17, determine Mini’s 2021 deferred tax assets and liabilities, deferred tax benefit or expense, and total tax benefit or expense.


Data in Problem 17

Mini, Inc., earns pretax book net income of $750,000 in 2021. Mini recognized $20,000 in bad debt expense for book purposes. This expense is not yet deductible for tax purposes. Mini reports no other temporary or permanent booktax differences. The applicable U.S. tax rate is 21%, and Mini earns an after-tax rate of return on capital of 4%. Compute Mini’s current income tax benefit or expense.  

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South Western Federal Taxation 2023 Essentials Of Taxation Individuals And Business Entities

ISBN: 9780357720103

26th Edition

Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young

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