Assume that Tyre Distributors Inc. prepared the following journal entry on December 31, 2021 relating to a 2021 timing (temporary) difference: DR Income tax expense- future $29,000 CR Future income tax liability $29,000 They provide you with the following additional information for 2021: - the tax rate was 25% in 2021 and prior years and the tax rate enacted in 2021 for 2022 and future years is 20%; - accounting income in 2021 was $700,000; - on December 31, 2020 the deferred tax liability was $100,000. The total tax expense (future plus current tax) for 2021 will be Select one: a. $169,000. b. $140,000. c. $135,000. d. $147,750. e. None of the above.
Assume that Tyre Distributors Inc. prepared the following journal entry on December 31, 2021 relating to a 2021 timing (temporary) difference: DR Income tax expense- future $29,000 CR Future income tax liability $29,000 They provide you with the following additional information for 2021: - the tax rate was 25% in 2021 and prior years and the tax rate enacted in 2021 for 2022 and future years is 20%; - accounting income in 2021 was $700,000; - on December 31, 2020 the deferred tax liability was $100,000. The total tax expense (future plus current tax) for 2021 will be Select one: a. $169,000. b. $140,000. c. $135,000. d. $147,750. e. None of the above.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 9P: Interperiod Tax Allocation Peterson Company has computed its pretax financial income to be 66,000 in...
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Assume that Tyre Distributors Inc. prepared the following
DR Income tax expense- future $29,000
CR Future income tax liability $29,000
They provide you with the following additional information for 2021:
- the tax rate was 25% in 2021 and prior years and the tax rate enacted in 2021 for 2022 and future years is 20%;
- accounting income in 2021 was $700,000;
- on December 31, 2020 the
The total tax expense (future plus current tax) for 2021 will be
Select one:
a.
$169,000.
b.
$140,000.
c.
$135,000.
d.
$147,750.
e.
None of the above.
Assume for this question only that Tyre Distributors Inc. had current income tax payable in 2021 of $80,000 and there was also a permanent difference in computing taxable income for disallowed meals and entertainment expenses of $32,000. Other facts remain the same as Question 47.
How much was the accounting income or loss for 2021?
Select one:
a.
$433,000.
b.
$465,000.
c.
$288,000.
d.
$207,000.
e.
None of the above.
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