Business, 13.04.2021 01:00 dragonstar6281

1. Deferred tax liability, January 1, 2020, $42,000. 2. Deferred tax asset, January 1, 2020, $0.
3. Taxable income for 2020, $99,750.
4. Pretax financial income for 2020, $105,000.
5. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $252,000.
6. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $36,750.
7. Tax rate for all years, 20%.
8. The company is expected to operate profitably in the future.

Required:
a. Compute the amount of pretax financial income for 2020.
b. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.
c. Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes."
d. Compute the effective tax rate for 2020.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 01:00

An investment counselor calls with a hot stock tip. he believes that if the economy remains strong, the investment will result in a profit of $40 comma 00040,000. if the economy grows at a moderate pace, the investment will result in a profit of $10 comma 00010,000. however, if the economy goes into recession, the investment will result in a loss of $40 comma 00040,000. you contact an economist who believes there is a 2020% probability the economy will remain strong, a 7070% probability the economy will grow at a moderate pace, and a 1010% probability the economy will slip into recession. what is the expected profit from this investment?

Answers: 2

Answer

Business, 22.06.2019 11:30

(select all that apply) examples of email use that could be considered unethical include denying receiving an e-mail requesting that you work late forwarding a chain letter asking for donations to a good cause sending a quick message to your friend about last weekend sending your boss the monthly sales figures in an attachment setting up a meeting with your co-worker sharing a funny joke with other employees

Answers: 2

Answer

Business, 22.06.2019 12:50

Suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable future. consider all factors that affect the yield curve. then identify which of the following shapes that the u.s. treasury yield curve can take. check all that apply.

Answers: 2

Answer

Business, 22.06.2019 12:50

In june 2009, at the trough of the great recession, the bureau of labor statistics announced that of all adult americans, 140,196,000 were employed, 14,729,000 were unemployed and 80,729,000 were not in the labor force. use this information to calculate: a. the adult population b. the labor force c. the labor-force participation rate d. the unemployment rate

Answers: 3

Answer

You know the right answer?

1. Deferred tax liability, January 1, 2020, $42,000. 2. Deferred tax asset, January 1, 2020, $0.

Questions