Question
ZZZ Corp. reported pre-tax accounting income of $ 330,000 and taxable income of $ 600,000 for 2020. The only reversible difference is accrued warranty costs,
ZZZ Corp. reported pre-tax accounting income of $ 330,000 and taxable income of $ 600,000 for 2020. The only reversible difference is accrued warranty costs, which are expected to be paid as follows:
2021 $ 90,000
2022 45,000
2023 45,000
2024 90,000
The enacted income tax rates are 35% for 2020, 30% for 2021, 2022 and 2023, and 25% for 2024. The deferred tax asset reported on ZZZs December 31, 2020 SFP should be
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
