Using the following information to respond to the questions below. The corporation taxrate is 21%.Book incomeM&E disallowanceExcess tax depreciation over book depreciation1. What is taxable income?2. What is the total tax expense on the financial statement?3. What is the current tax expense4. What is the deferred tax expense$100,000$2,500$ 4,000

1. Taxable Income: Taxable Income = Book Income - M&E Disallowance + Excess Tax Depreciation…

Answered: 1. What is taxable income? 2. What is…

1. What is taxable income? 2. What is the total tax expense on the financial statement? 3. What is the current tax expense 4. What is the deferred tax expense

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 44P

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

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