Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A reconciliation of Pharoah Company's pretax accounting income with its taxable income for 2018, its first year of operations, is as follows: Pretax accounting income$5300000
A reconciliation of Pharoah Company's pretax accounting income with its taxable income for 2018, its first year of operations, is as follows:
Pretax accounting income$5300000
Excess tax depreciation
(153000)Taxable income
$5147000
The excess tax depreciation will result in equal net taxable amounts in each of the next three years. Enacted tax rates are 40% in 2018, 30% in 2019 and 2020, and 30% in 2021. The total deferred tax liability to be reported on Pharoah's balance sheet at December 31, 2018, is
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started