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If not 100 sure .. skip it.. otherwise will be downvoted... ASAP.. thanks DT Co. reported $500,000 of pretax financial income with the following inclusions:
If not 100 sure .. skip it.. otherwise will be downvoted... ASAP.. thanks
DT Co. reported $500,000 of pretax financial income with the following inclusions: - $25,000 of life insurance premiums for policies on which the corporation is the beneficiary - Interest income on municipal bonds of $125,000. - Product warranty costs of $50,000 to be incurred in future years -Book depreciation less than the accelerated tax depreciation by $75,000 1. What amounts should DT Co. report on the income statement for federal taxes, assuming a 30% current tax rate and 40% future enacted tax rate? 2. Record J/E and show the B/S presentation of Deferred Tax Asset & LiabilityStep by Step Solution
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