Question
Doodle Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2020: Book income before
Doodle Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2020:
Book income before income taxes $2,700,000
Add temporary difference
Construction contract revenue which will reverse in 2021 240,000
Deduct temporary difference
Depreciation expense which will reverse in equal amounts in each of the next four years (960,000)
Taxable income $1,980,000
The enacted income tax rate is 21% in 2020. How should Doodle report deferred taxes?
- DTA (current) 50,400; DTL (noncurrent) 201,600.
- DTL (noncurrent) 201,600
- DTL (noncurrent) 151,200
- DTL (noncurrent 100,800
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Auditing And Assurance Services An Integrated Approach
Authors: Alvin A. Arens . Randal J. Elder . Mark S. Beasley
15th Global Edition
0273790005, 978-0273790006
