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B. Assume now that the enacted tax rates on 1/1/2019 were 30% for all years. Then, in early 2020 the rates were decreased unexpectedly to
B. Assume now that the enacted tax rates on 1/1/2019 were 30% for all years. Then, in early 2020 the rates were decreased unexpectedly to 20% for 2020 and all later years. Using the table provided below, show the provision for income taxes for 2019 through 2022 as reported in the respective financial statements for each year. Below the table, show well-labeled calculations or explanations for values in the table. 2019 2020 2021 2022 Income before taxes Provision for income taxes: Current ITE (a) Deferred taxes: At enacted tax rates (6) Effect of one-time decrease in tax rate (C) Total provision for taxes Net Income Effective income tax rate (d) Calculations or explanations for rows (a through d): Shown by year from 2019 to 2022: (a) (d) B. Assume now that the enacted tax rates on 1/1/2019 were 30% for all years. Then, in early 2020 the rates were decreased unexpectedly to 20% for 2020 and all later years. Using the table provided below, show the provision for income taxes for 2019 through 2022 as reported in the respective financial statements for each year. Below the table, show well-labeled calculations or explanations for values in the table. 2019 2020 2021 2022 Income before taxes Provision for income taxes: Current ITE (a) Deferred taxes: At enacted tax rates (6) Effect of one-time decrease in tax rate (C) Total provision for taxes Net Income Effective income tax rate (d) Calculations or explanations for rows (a through d): Shown by year from 2019 to 2022: (a) (d)
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