Question
Exercise 14-19 (Algorithmic) (LO. 1, 4) Mini, Inc., earns pretax book net income of $1,804,000 in 2020, its first year of operations. Mini recognized
Exercise 14-19 (Algorithmic) (LO. 1, 4) Mini, Inc., earns pretax book net income of $1,804,000 in 2020, its first year of operations. Mini recognized $161,600 in bad debt expense for book purposes. This expense is not yet deductible for tax purposes. Mini reports no other temporary or permanent differences. The U.S. Federal corporate income tax rate is 21%, and Mini earns an after-tax rate of return on capital of 8%. Enter below the 2020 deferred tax expense, total tax expense, and deferred tax assets and liabilities. Balance Sheet Deferred tax asset Income Statement Deferred tax benefit Mini's total tax expense will be: Current tax expense Deferred tax benefit Total tax expense
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