At the end of 2021, its first year of operations, Alsup Consulting's reconciliation of pretax accounting income to taxable income was as follows: Pretax accounting income $ 250,000 Permanent difference (14,700 ) 235,300 Temporary difference-depreciation (19,800 ) Taxable income $ 215,500 Alsup's tax rate is 25%. No estimated taxes have been paid. What should Alsup report as its deferred income tax liability as of the end of 2021?
At the end of 2021, its first year of operations, Alsup Consulting's reconciliation of pretax accounting income to taxable income was as follows: Pretax accounting income $ 250,000 Permanent difference (14,700 ) 235,300 Temporary difference-depreciation (19,800 ) Taxable income $ 215,500 Alsup's tax rate is 25%. No estimated taxes have been paid. What should Alsup report as its deferred income tax liability as of the end of 2021?
Chapter26: Tax Practice And Ethics
Section: Chapter Questions
Problem 32P
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At the end of 2021, its first year of operations, Alsup Consulting's reconciliation of pretax accounting income to taxable income was as follows:
Pretax accounting income | $ | 250,000 | ||
Permanent difference | (14,700 | ) | ||
235,300 | ||||
Temporary difference-depreciation | (19,800 | ) | ||
Taxable income | $ | 215,500 | ||
Alsup's tax rate is 25%. No estimated taxes have been paid.
What should Alsup report as its
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