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Sheridan Corp. reported the following taxable income or (loss) for its first three years of operations: 2020 $ (220,000) 2021 $ 150,000 2022 $ 195,000
Sheridan Corp. reported the following taxable income or (loss) for its first three years of operations:
2020 $ (220,000)
2021 $ 150,000
2022 $ 195,000
Sheridan's tax rate is 21% in 2020 and future years.
a. Calculate the deferred tax asset (if any) that Sheridan will report on its 2021 financial statements.
b. Using the information above, calculate income tax payable (if any) that Sheridan will report on its 2022 financial statements.
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