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Don't copy answers form other chegg post. The Sample Corporation prepared the following income statements and income tax returns for Year 1 through Year 4.
Don't copy answers form other chegg post.
The Sample Corporation prepared the following income statements and income tax returns for Year 1 through Year 4.
Income Statement | Year 1 | Year 2 | Year 3 | Year 4 |
---|---|---|---|---|
Sales | $1,000 | $1,000 | $1,000 | $1,000 |
Operating expenses | 650 | 650 | 650 | 650 |
Pretax net income | $350 | $350 | $350 | $350 |
Provisions for income taxes | 160 | 160 | 120 | 120 |
Net income | $190 | $190 | $230 | $230 |
Income Tax Return | Year 1 | Year 2 | Year 3 | Year 4 |
---|---|---|---|---|
Sales | $1,000 | $1,000 | $1,000 | $1,000 |
Operating expenses | 900 | 900 | 400 | 400 |
Taxable income | $100 | $100 | $600 | $600 |
Income tax payable | 40 | 40 | 240 | 240 |
After-tax net income | $60 | $60 | $360 | $360 |
Calculate the balance in the company's deferred income tax liability account at the end of each year.
Year 1 | |
Year 2 | |
Year 3 | |
Year 4 |
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