Question
Nalad Corp. provided the following data related to accounting and taxable income: 20X8 20X9 Pre-tax accounting income (financial statements) $ 460,000 $ 470,000 Taxable income
Nalad Corp. provided the following data related to accounting and taxable income:
| 20X8 | 20X9 | |||||
| Pre-tax accounting income (financial statements) | $ | 460,000 | $ | 470,000 | ||
| Taxable income (tax return) | 270,000 | 660,000 | ||||
| Income tax rate | 38 | % | 38 | % | ||
There are no existing temporary differences other than those reflected in these data. There are no permanent differences. Required: 1-a. How much tax expense would be reported in each year if the taxes payable method was used?
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Accounting
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones
5th Edition
0130906999, 978-0130906991
