Question
The book basis of depreciable assets for Ibis Co. is $1,020,000, and the tax basis is $850,000 at the end of 2019. The difference in
The book basis of depreciable assets for Ibis Co. is $1,020,000, and the tax basis is $850,000 at the end of 2019. The difference in bases is due to depreciation (tax basis uses an accelerated method). The enacted tax rate is 32% for all periods. Determine the amount of deferred taxes to be reported on the balance sheet at the end of 2019.
Snowbird Companys current income taxes payable related to its taxable income for 2019 is $280,000. In addition, Snowbirds deferred tax liability increased $32,000 and its deferred tax asset increased $13,000 during 2019. What is Snowbirds income tax expense for 2019?
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