Question
A reconciliation of pretax financial statement income to taxable income is shown below for Fieval Industries for the year ended December 31, 2021, its first
A reconciliation of pretax financial statement income to taxable income is shown below for Fieval Industries for the year ended December 31, 2021, its first year of operations. The income tax rate is 25%. Pretax accounting income (income statement) $ 300,000 Interest revenue on municipal securities (15,000 ) Warranty expense in excess of deductible amount 25,000 Depreciation in excess of financial statement amount (70,000 ) Taxable income (tax return) $ 240,000 What amount(s) should Fieval report related to deferred income taxes in its 2021 balance sheet? Multiple Choice Current deferred tax asset of $4,000 and noncurrent deferred tax liability of $17,500. Noncurrent deferred tax liability of $24,000. Current deferred tax asset of $6,250 and noncurrent deferred tax liability of $17,500. Noncurrent deferred tax liability of $11,250.
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