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Reyes, Inc. reported income before tax of $170,000 and taxable income was $220,000. This $50,000 difference was due to unearned revenues that the firm
Reyes, Inc. reported income before tax of $170,000 and taxable income was $220,000. This $50,000 difference was due to unearned revenues that the firm recorded as revenue for tax purposes, but as a liability for book purposes. Reyes is subject to a 40% tax rate. a. What is the book basis of the unearned revenue? b. What is the tax basis of the unearned revenue? C. d. What are Reyes's deferred tax asset, income tax payable, and income tax expense for the current year? Prepare the journal entry to record the tax provision for the current year. a. What is the book basis of the unearned revenue? b. What is the tax basis of the unearned revenue? c. What are Reyes's deferred tax asset, income tax payable, and income tax expense for the current year? Start by determining the book and tax basis of unearned revenue. Then calculate the deferred tax asset. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Unearned revenue Tax rate Deferred tax asset Book (GAAP) basis Tax basis Difference % Help me solve this Etext pages Get more help - H Type here to search "' Clear all Check answer 55F Mostly sunny 2:03 PM 1/18/2022
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