Collects cash from the buyer installment payments

Assignment Help Financial Accounting

Reference no: EM131267768

1) Isaac Inc. began operations in January 2016. For certain of its property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments.

In 2016, Isaac had $647 million in sales of this type. Scheduled collections for these sales are as follows:

2016 $ 72 million

2017 130 million

2018 124 million

2019 158 million

2020 163 million

$647 million

Assume that Isaac has a 28% income tax rate and that there were no other differences in income for financial statement and tax purposes.

Ignoring operating expenses, what deferred tax liability would Isaac report in its year-end 2016 balance sheet?

In 2016, Bodily Corporation reported $220,000 pretax accounting income. The income tax rate for that year was 26%. Bodily had an unused $118,000 net operating loss carryforward from 2014 when the tax rate was 36%. Bodily's income tax payable for 2016 would be?

Reference no: EM131267768

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