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G.3). In its first year of operations (2021), GX reported $700 million in income before income taxes. Tax depreciation exceeded accounting depreciation by $50 million.
G.3). In its first year of operations (2021), GX reported $700 million in income before income taxes. Tax depreciation exceeded accounting depreciation by $50 million. The company also had non-tax-deductible expenses of $80 million relating to permanent differences. The income tax rate for 2021 was 25%, but the enacted rate after 2021 is 30%. The balance in the deferred tax liability in the December 31, 2021, balance sheet is: A) $8 million. B) $11 million. C) $15 million.de D) $24 million. H.2) A company reported $200 million of pretax accounting and taxable income in the current year. The company also had a net-operating loss carryforward of $80 million at the beginning of the year. The income tax rate in previous years was 30%. On January 1 of the current year, a new tax law was enacted, reducing the rate to 25% effective immediately. The company's income taxes payable for the current year is A) $48 million. B) $28 million. C) $30 million. D) $36 million
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