Income statement of ohio corp

Reference no: EM1310348

Ohio Corp. reported a deferred tax liability of $6,000,000 for the year ended December 31, 2012, when the tax rate was 40%. The deferred tax liability was related to a temporary difference of $15,000,000 caused by an instalment sale in 2012. The temporary difference is expected to reverse in years 2013 through 2015 as $5,000,000 of instalment income is expected to be recognized as taxable income in each of those years. There are no other temporary differences. A new tax law was passed in 2013 with the tax rate remaining 40% through December 31, 2013, then increase to 45% for tax years beginning after December 31, 2013. Taxable income for the year 2013 is $30,000,000. Income tax expense reported by Ohio on its year end December 31, 2013 income statement is:

Reference no: EM1310348

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Income statement of ohio corp : Ohio Corp. reported a deferred tax liability of $6,000,000 for the year ended December 31, 2012, when the tax rate was 40%. Income tax expense reported by Ohio on its year end December 31, 2013 income statement is:

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