Problem 3-14 (Algorithmic) (LO. 1, 4) Prance, Inc., earns pretax book net Income of $1,281,000 in 2019. Prance acquires a depreciable asset in 2019, and first-year tax depreciation exceeds book depreciation by $128,100. In 2020, Prance reports $896,700 of pretax book net income, and the book depreciation exceeds tax depreciation that year by $32,025. Prance reports no other temporary or permanent book-tax differences. Assume the pertinent U.S. Federal corporate income tax rate is 21% and Prance earns an after-tax rate of return on capital of 8%. Enter below the 2020 Prance's deferred tax expense and any deferred tax asset or liability. If an amount is zero, enter "o". It required, round your answer to nearest whole value. a. Deferred tax asset account balance 0 b. Deferred tax liability account balance c. In net present value terms, what has been the value to Prance of accelerating $32,025 of 2020 book depreciation to 2019? The present value factor at 8% is 0.9259. 29,652 X Problem 3-18 (Algorithmic) (LO. 1, 4) Mini, Inc., earns pretax book net income of $1,558,000 in 2019. Mini deducted $189,200 in bad debt expense for book purposes. This expense is not yet deductible for tax purposes. Mini reports $1,635,900 of pretax book net income in 2020. Mini did not recognize any bad debt expense for book purposes in 2020 but did deduct $141,900 in bad debt expense for tax purposes. Mini reports no other temporary or permanent differences. The applicable U.S. Federal corporate Income tax rate is 21%, and Mini carns an after-tax rate of return on capital of 8%. Enter below the 2020 end-of-year balance in Mint's deferred tax asset and deferred tax liability balance sheet accounts If an amount is zero, enter "0", 18 required, round your answer to nearest whole value. 2020 a. Deferred tax asset account balance 9,933 b. Deferred tax liability account balance o c. In net present value terms, what has been the cost to Mini of the deferred tax deduction for bad debts? The present value factor at 8% is 0.9259 131,385.21 X Problem 3-14 (Algorithmic) (LO. 1, 4) Prance, Inc., earns pretax book net Income of $1,281,000 in 2019. Prance acquires a depreciable asset in 2019, and first-year tax depreciation exceeds book depreciation by $128,100. In 2020, Prance reports $896,700 of pretax book net income, and the book depreciation exceeds tax depreciation that year by $32,025. Prance reports no other temporary or permanent book-tax differences. Assume the pertinent U.S. Federal corporate income tax rate is 21% and Prance earns an after-tax rate of return on capital of 8%. Enter below the 2020 Prance's deferred tax expense and any deferred tax asset or liability. If an amount is zero, enter "o". It required, round your answer to nearest whole value. a. Deferred tax asset account balance 0 b. Deferred tax liability account balance c. In net present value terms, what has been the value to Prance of accelerating $32,025 of 2020 book depreciation to 2019? The present value factor at 8% is 0.9259. 29,652 X Problem 3-18 (Algorithmic) (LO. 1, 4) Mini, Inc., earns pretax book net income of $1,558,000 in 2019. Mini deducted $189,200 in bad debt expense for book purposes. This expense is not yet deductible for tax purposes. Mini reports $1,635,900 of pretax book net income in 2020. Mini did not recognize any bad debt expense for book purposes in 2020 but did deduct $141,900 in bad debt expense for tax purposes. Mini reports no other temporary or permanent differences. The applicable U.S. Federal corporate Income tax rate is 21%, and Mini carns an after-tax rate of return on capital of 8%. Enter below the 2020 end-of-year balance in Mint's deferred tax asset and deferred tax liability balance sheet accounts If an amount is zero, enter "0", 18 required, round your answer to nearest whole value. 2020 a. Deferred tax asset account balance 9,933 b. Deferred tax liability account balance o c. In net present value terms, what has been the cost to Mini of the deferred tax deduction for bad debts? The present value factor at 8% is 0.9259 131,385.21 X
