Question
In 2017, HD had reported a deferred tax asset of $118 million with no valuation allowance. At December 31, 2018, the account balances of HD
In 2017, HD had reported a deferred tax asset of $118 million with no valuation allowance. At December 31, 2018, the account balances of HD Services showed a deferred tax asset of $155 million before assessing the need for a valuation allowance and income taxes payable of $94 million. HD determined that it was more likely than not that 30% of the deferred tax asset ultimately would not be realized. HD made no estimated tax payments during 2018. What amount should HD report as income tax expense in its 2018 income statement? (Round your calculations to the nearest whole million.)
Multiple Choice
-
$57 million
-
$141 million
-
$94 million
-
$104 million
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started