Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

29) Blue Sky Company reported the following results for the year ended December 31, 2021, its first year of operations: 2021 Income (per books before

image text in transcribed

29) Blue Sky Company reported the following results for the year ended December 31, 2021, its first year of operations: 2021 Income (per books before income taxes)$ 1,500,000 Taxable income 3,200,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2022. What should Blue Sky record as a net deferred tax asset or liability for the year ended December 31, 2021, assuming that the enacted tax rates in effect are 35% in 2021 and 20% in 2022? 30) Beta Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/20 and 12/31/21 contained the following errors: 2020 2021 Ending inventory $40,000 overstatement$60,000 overstatement Depreciation expense 15,000 overstatement30,000 overstatement Assume that the 2020 errors were not corrected and that no errors occurred in 2019. By what amount will 2020 income before income taxes be overstated or understated? 31) Jersey, Inc. had pre-tax accounting income of $2,500,000 and a tax rate of 20% in 2021, its first year of operations. During 2021 the company had the following transactions: Received rent from Maine, Co. for 2022 Depreciation for tax purposes in excess of book depreciation $ 85,000 $60,000 Compute the deferred tax asset balance at December 31, 2021

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Linguistic Auditing

Authors: Nigel Reeves, Colin Wright

1st Edition

ISBN: 1853593281, 978-1853593284

More Books

Students also viewed these Accounting questions

Question

Write formal and informal proposals.

Answered: 1 week ago

Question

Describe the components of a formal report.

Answered: 1 week ago

Question

Write formal and informal reports.

Answered: 1 week ago