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Home 1: In its 2019 income statement, Stood Stoody Co. reported income before income taxes of $500,000. Stood Stoody estimated that, because of permanent differences,
Home 1: In its 2019 income statement, Stood Stoody Co. reported income before income taxes of $500,000. Stood Stoody estimated that, because of permanent differences, taxable income for 2019 would be $300,000. During 2019, Stood Stoody made estimated tax payments of $100,000, which were debited to income tax expense. Stood Stoody is subject to a 30% tax rate. 3. What amount should Stood Stoody report as income tax expense? 4. What amount should Stood Stoddy report as deferred income taxes? HOME 2: In its 2019 income statement, Bruce Brucely Co. reported income before income taxes of $600,000. Bruce Brucely Co had no permanent differences. However, Bruce Brucely Co received rent in advanced for 2020 in the amount of $300,000. Bruce Brucely Co is subject to a 30% tax rate. 3. What amount should Bruce Brucely Co report as income tax expense? 4. What amount should Bruce Brucely Co report as deferred income taxes
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