Question
Prepare the income tax accrual assuming the tax rate is 20%. The differences between book and tax are as follows: Future deductible amounts: Warranty expense
Prepare the income tax accrual assuming the tax rate is 20%. The differences between book and tax are as follows: Future deductible amounts: Warranty expense 80,000 and vacation pay 20,000. Future taxable amount: Tax depreciation was $240,000, whereas book depreciation was only $40,000. Taxable income for 2022 is $1,471,614. There were no previous balances in the Deferred Tax Asset or Deferred Tax Liability accounts.
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
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