Question
Financial Reporting Financial Reporting Income Tax Reporting Income Tax Reporting Depreciation Expense Warranty Expense Depreciation Deduction Warranty Deduction 2008 (actual) $25,000 $18,000 $40,000 $0 2009
| Financial Reporting | Financial Reporting | Income Tax Reporting | Income Tax Reporting | |
| Depreciation Expense | Warranty Expense | Depreciation Deduction | Warranty Deduction | |
| 2008 (actual) | $25,000 | $18,000 | $40,000 | $0 |
| 2009 (estimated) | 25,000 | 0 | 30,000 | 6,000 |
| 2010 (estimated) | 25,000 | 0 | 25,000 | 6,000 |
| 2011 (estimated) | 25,000 | 0 | 5,000 | 6,000 |
Pretax financial income is $38,000 for 2008. If the enacted Tax rate is 40% for all years, what is Taxable income?
What is the amount of the deferred tax asset associated with Warranties?
What is the amount of the deferred tax liability associated with Depreciation?
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Blood Audit
Authors: Edward S Blythe
1st Edition
1480180394, 978-1480180390
