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Question - Brenna corporation began 2010 with a $90000 balance in the deferred tax liability account.At the end of 2010 the related cumulative temporary difference amounts to $350000 and it will reverse evenly over the next 2 years. Preta accounting income for 2010 is $525000, the tax rate for all years is 40% and the taxable income for 2010 is $400000.
A. Compute income taxes payable for 2010.
B. Prepare the journal entry to record income tax expense, deferred income taxes and income tax payable for 2010.
C. Prepare the income tax expense section of the income statement for 2010 beginning with the line income before income taxes.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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