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Using the following information, determine the tax expense that would be recognized in 2021. Buzzword Inc. provides an invaluable service to their famous clients by
Using the following information, determine the tax expense that would be recognized in 2021.
Buzzword Inc. provides an invaluable service to their famous clients by keeping them in the media. Their motto is, "there's no such thing as bad press!" In 2021, Buzzword has outstanding receivables of $180,000. This is the only temporary difference and their tax payable is $546,000. They anticipate that they will collect 96,000 in 2022 and 84,000 in 2023 for the outstanding receivables. Enacted tax rates are as follows:
- 2021 = 35%
- 2022 = 30%
- 2023 = 25%
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