Mini, Inc., earns pretax book net income of $750,000 in 2021, its first year of operations. 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 book-tax differences. The U.S. Federal corporate income tax rate is 21%, and Mini earns an after-tax rate of return on capital of 4%. Enter below the 2021 deferred tax assets and liabilities, deferred tax benefit or expense, and total tax benefit or expense.
Mini, Inc., earns pretax book net income of $750,000 in 2021, its first year of operations. 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 book-tax differences. The U.S. Federal corporate income tax rate is 21%, and Mini earns an after-tax rate of return on capital of 4%. Enter below the 2021 deferred tax assets and liabilities, deferred tax benefit or expense, and total tax benefit or expense.
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 20CE
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Mini, Inc., earns pretax book net income of $750,000 in 2021, its first year of operations. Mini recognized $20,000 in
Enter below the 2021
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