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Giada Foods reported $1,020 million in income before income taxes for 2016, its first year of operations. Tax depreciation exceeded depreciation for financial reporting purposes
Giada Foods reported $1,020 million in income before income taxes for 2016, its first year of operations. Tax depreciation exceeded depreciation for financial reporting purposes by $140 million. The company also had non-tax-deductible expenses of $112 million relating to permanent differences. The income tax rate for 2016 was 35%, but the enacted rate for years after 2016 is 40%. The balance in the deferred tax liability in the December 31, 2016, balance sheet is:
$78 million.
$22 million.
$56 million.
$49 million.
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