Question
A593 Taxes Team Assignment This problem is a two-year cumulative problem. This means that (unless otherwise indicated) you are to assume that ending balances
A593 Taxes Team Assignment This problem is a two-year cumulative problem. This means that (unless otherwise indicated) you are to assume that ending balances from 2019 become beginning balances for 2020 and that assumptions and facts pertain to both years. TEXAS Coal has the following partial comparative balance sheets: 2020 December 31, 2019 Change Current Assets Accounts receivable Prepaid expenses Noncurrent Assets Property, plant and equipment Accumulated depreciation Net PPE 33,000 32,000 1,000 10,000 4,000 6,000 100,000 100,000 (40,000) (20,000) (20,000) 40,000 60,000 (20,000) Deferred tax asset- non current ? Current Liabilities Unearned revenue 2,000 10,000 (8,000) Warranty liabilities 7,000 2,000 5,000 Noncurrent Liabilities Deferred tax liability - noncurrent ? ? Contingent Loss Environmental Litigation 150,000 100,000 50,000 Additional information: 1. TEXAS was founded in 2000 and has December 31 fiscal and tax year ends. 2. TEXAS's taxable income for the last three years along with the tax rates for those years and future years are as follows: Taxable Income Year Tax Rate (Loss) 2016 65% 100,000 2017 30% 80,000 2018 35% 42,000 2019 40% (90,000) 2020 30% ? 2021 30% ? 2022 30% ? thereafter 25% ?
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