How much is the income tax expense

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In 2021, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 30%. Compute the amount to be reported as income taxes payable on December 31, 2021. $36,000. The following items pertains to Shinault Inc. The accounting records of Shinault Inc. show the following data for 2021 (its first year of operations). Life insurance expense on officers was $9,000. Equipment was acquired in early January for$300,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Shinault used a 30% rate to calculate depreciation. Interest revenue on State of New York bonds totaled $4,000. Product warranties were estimated to be $50,000 in 2021. Actual repair and labor costs related to the warranties in 2021 were $10,000. The remainder is estimated to be paid evenly in 2022 and 2023. Gross profit on an accrual basis, $75,000 was recorded on the installment-sales method. Pretax financial income was $750,000. The tax rate is 30%.

Problem a. How much is the taxable income?

Problem b. How much is the income tax expense?

Problem c. How much is the deferred tax liability (asset)?

Reference no: EM132856675

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