Gobble goop corp incorporated in 2008 in their current year

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Gobble Goop Corp incorporated in 2008. In their current year (2011), the company has furnished you (a super star accountant) with the following information regarding their financial and tax returns: Sales with installments are reported at $50,000. For tax purposes, these sales are listed at $42,000. Bad debt expenses for the year are $4,500. During the year, $3,000 of bad debts were written-off. Depreciation per financial statements amounted to $85,000 and $98,000 for tax purposes. A new air hockey table cost $6,000. The company paid $10,000 in speeding tickets. The company collected $35,000 from a life insurance policy. Gobble Goop also have a $25,000 deferred tax asset and a $45,000 deferred tax liability. Net income for the year is $125,000 (pre tax) and the tax rate is 30%. What would it be if the installment sales were a reversing difference? What if the tax rate changed from 30% to 40% at the beginning of the year? What if the deferred tax asset was a NOL?

Reference no: EM13574494

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