Question
On its December 31, year 2 balance sheet, Shin Co. had income taxes payable of $13,000 and a current deferred tax asset of $20,000 before
income taxes payable of $13,000 and a current deferred tax asset
of $20,000 before determining the need for a valuation account.
Shin had reported a current deferred tax asset of $15,000 at December
31, year 1. No estimated tax payments were made during
year 2. At December 31, year 2, Shin determined that it was
more likely than not that 10% of the deferred tax asset would not
be realized. In its year 2 income statement, what amount should
Shin report as total income tax expense?
$ 8,000
$ 8,500
$10,000
$13,000
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
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