Question
1. The book basis of depreciable assets for Marin Co. is $850,000, and the tax basis is $650,000 at the end of 2018. The enacted
1. The book basis of depreciable assets for Marin Co. is $850,000, and the tax basis is $650,000 at the end of 2018. The enacted tax rate is 33% for all periods. Determine the amount of deferred taxes to be reported on the balance sheet at the end of 2018. What is the amount of deferred taxes?
2. Sunland Inc. has a deferred tax liability of $67,700 at the beginning of 2018. At the end of 2018, it reports accounts receivable on the books at $90,000 and the tax basis at zero (its only temporary difference). If the enacted tax rate is 34% for all periods, and income taxes payable for the period is $234,000, determine the amount of total income tax expense to report for 2018. What is the income tax expense?
3. Indigo financial income for Lake Inc. is $340,000, and its taxable income is $90,000 for 2018. Its only temporary difference at the end of the period relates to a $70,000 difference due to excess depreciation for tax purposes. If the tax rate is 40% for all periods, compute the amount of income tax expense to report in 2018. No deferred income taxes existed at the beginning of the year. Income tax expense?
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