Question
Prance, Inc., earned pretax book net income of $1,809,000 in 2020. Prance acquired a depreciable asset that year, and first-year tax depreciation exceeded book depreciation
Prance, Inc., earned pretax book net income of $1,809,000 in 2020. Prance acquired a depreciable asset that year, and first-year tax depreciation exceeded book depreciation by $180,900. Prance reported no other temporary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21%, and Prance earned an after-tax rate of return on capital of 8%. Enter below Prance's 2020 deferred tax expense and any deferred tax asset or liability.
Balance Sheet
Deferred tax liability:
Income Statement
Deferred tax expense:
Prance's total tax expense will consist of the following:
Current tax expense:
Deferred tax expense:
Total tax expense:
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