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The company rents some of the premises where it has its warehouses located. The rent requires payments at the end of each month (ordinary annuity).
The company rents some of the premises where it has its warehouses located. The rent requires payments at the end of each month (ordinary annuity). At the end of the year, the rent for the month of December is paid the first week of the first month of the following year. This rent is accumulated in the Statement of Financial Position as rent payable. Assuming that the company's average tax rate of 22.4% (.224) and the rental expense in the Statement of Income and Expenses for 2019 was 24,000 (in thousands), how much of that rental expense was deducted in the tax return 2019 (in thousands)? Select one:
2019 2018 $ 21,649 12,476 9,276 8,874 8,757 7,675 7.216 564 (In thousands) Deferred tax assets: Rent Employee compensation and benefits Inventories Deferred compensation Net operating loss Accruals not currently deductible State tax credits Foreign tax credits Other Gross deferred tax assets Valuation allowance Total deferred tax assets Deferred tax liabilities: Property and equipment Prepaid Expenses Other Total deferred tax liabilities Total delerred tax assets, net $ 20,753 1,599 8,900 7,698 9,232 5,631 7,492 3,123 4,936 69,364 (7,096) $ 62,268 5,000 81,487 (6,992) $ 74,495 $(53,774) $ (4,128) (2,531) $(60,433) $ 14,062 $(46,165) $ (3,736) (3,023) $(52,924) $ 9,344 a. $ 22,000
b. $ 28,000
C. $ 20,000
d. $ 24,000
e. $ 4,000
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