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Question 1 Partially correct Mark 2.08 out of 8.33 Calculating Deferred Income Taxes The Sample Corporation prepared the following income statements and income tax returns
Question 1 Partially correct Mark 2.08 out of 8.33 Calculating Deferred Income Taxes The Sample Corporation prepared the following income statements and income tax returns for Year 1 through Year 4. Income Statement Year 1 Year 2 Year 3 Year 4 Sales $1,000 $1,000 $1,000 $1,000 Operating expenses 650 650 650 650 Pretax net income $350 $350 $350 $350 Provisions for income taxes 160 160 120 120 Net income $190 $190 $230 $230 Income Tax Return Year 1 Year 2 Year 3 Year 4 4 Sales $1,000 $1,000 $1,000 $1,000 Operating expenses 900 900 400 400 Taxable income $100 $100 $600 $600 Income tax payable 40 40 240 240 After-tax net income 560 $60 $360 $360 Calculate the balance in the company's deferred income tax liability account at the end of each year. Year 1 $ Year 2 $ 2 Year 3 $ Year 4 $ 0 X 0X OX 0 Partially correct Marks for this submission: 2.08/8.33
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