Quinn Company reported a net deferred tax asset of $10,500 in its December 31, 2016, balance sheet.

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Quinn Company reported a net deferred tax asset of $10,500 in its December 31, 2016, balance sheet. For 2017, Quinn reported pre-tax financial statement income of $300,000. Temporary differences of $100,000 resulted in taxable income of $200,000 for 2017. At December 31, 2017, Quinn had net cumulative taxable differences of $70,000. The income tax rate is 35%.

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In its December 31, 2017, income statement, what should Quinn report as the deferred portion of income tax expense?

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Financial Reporting and Analysis

ISBN: 978-1259722653

7th edition

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

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Question Posted: Oct 06, 2022 01:59 AM

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Quinn Company reported a net deferred tax asset of $10,500 in its December 31, 2016, balance sheet.

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The deferred portion of income tax expense is the change in a companys deferred tax assets or liabil...View the full answer

Financial Reporting and Analysis

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