Question
Scott Corp. received cash of $20,000 that was included in revenues in its 2009 financial statements, of which $12,000 will not be taxable until 2010.
Scott Corp. received cash of $20,000 that was included in revenues in its 2009 financial statements, of which $12,000 will not be taxable until 2010. Scott’s enacted tax rate is 30% for 2009, and 25% for 2010. What amount should Scott report in its 2009 balance sheet for deferred income tax liability?
a. $2,000
b. $2,400
c. $3,000
d. $3,600
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Income tax Income tax is the tax to be paid to the government on ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Macroeconomics
Authors: David Colander
8th edition
978-0078004407, 78004403, 978-0077247171, 77247175, 978-0077307110
