Use the same information as in BE17- 17, but now assume that Finer Shoes Company is an
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BE17-17
Finer Shoes Company recorded book income of $ 120,000 in 2014. It does not have any permanent differences and the only temporary difference relates to a $ 60,000 installment sale that it recorded for book purposes. Finer Shoes anticipates collecting the installment sales equally over the following two years. The current enacted tax rate is 40%. The substantively enacted tax rates for the following three years are 42%, 45%, and 45%, respectively. What deferred tax amount should Finer Shoes record for this temporary difference under U. S. GAAP?
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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