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At the end of 2024 , its first year of operations, Carla Vista Company prepared a reconciliation between pretax financial income and taxable income as
At the end of 2024 , its first year of operations, Carla Vista Company prepared a reconciliation between pretax financial income and taxable income as follows: The estimated litigation expense of $4385000 will be deductible in 2025 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2126000 in each of the next 3 years. The income tax rate is 20% for all years. The deferred tax asset at the end of 2024 to be recognized is $425200$877000$677000
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