Deferred tax expense, The enacted tax rate increased to 30

Deferred tax expense

Reference no: EM13126999

Erika's Surf Shop had taxable income in Year 2 of $500,000 and pretax financial income of $600,000. The company had a cumulative $200,000 difference between its taxable income and pretax financial statement income at December 31, Year 1. These differences were solely related to accelerated depreciation methods used for income tax purposes. The enacted tax rate increased to 30 percent in Year 2 compared to an enacted rate of 20 percent in the prior year. At December 31, Year 2, the company would record a deferred tax expense of:

A. $40,000

B. $50,000

C. $90,000

D. $150,000

Reference no: EM13126999

Questions Cloud

Depreciation expense per tax return : For the year ended December 31, Laramie Industries has a depreciation expense per its tax return greater than its financial statement tax expense, and had recorded warranty expense (associated with a one-year guarantee on its products) in its fina..

Construct the diffusion index from month : Construct the diffusion index from month 2 to 3. This problem, we have three leading indicators and the diffusion index from month 1 to 2 is 66.7 (=2/3) because two indicators move up and one moves down

Calculate the mass of ice : Consider a glass of 171 mL of water at 29°C. Calculate the mass of ice at -15°C that must be added to cool the water to 10°C after thermal equilibrium is achieved.

Balance and do total net ionic equations : If doing by hand, please write dark onpaper before scanning. Balance and do total net ionic equations

Deferred tax expense : The enacted tax rate increased to 30 percent in Year 2 compared to an enacted rate of 20 percent in the prior year. At December 31, Year 2, the company would record a deferred tax expense of:

Identify the limiting reagent : The equation for the complete combustion of ethene (C2H4) is C2H4(g) + 3 O2(g) ==> 2CO2(g) + 2H2O(g) If 2.70 mol C2H4 is reacted with 6.30 mole O2,

Does the production function exhibit diminishing returns : Show the change in Q if L changes from 1 to 2, and 2 to 3, and does the production function exhibit diminishing returns? If so, when does the law of diminishing returns begin to operate? Could we ever get negative returns?

The rate constant increases by a factor : The rate constant increases by a factor of 2.00 when the temperature is increased from 80 C to 115 C. estimate the arrhenius activation energy.

Enacted tax rate-current and future periods : The enacted tax rate is 25% in current and future periods. What will White record as its income tax expense in Year 1?

User Account

All Pages