What deferred tax asset in blossom december balance sheet

Assignment Help Financial Accounting
Reference no: EM132987315

Blossom Co., organized on January 2, 2021, had pretax accounting income of $ 830000 and taxable income of $ 2470000 for the year ended December 31, 2021.

The only temporary difference is accrued product warranty costs which are expected to be paid as follows:

2022 $ 574000

2023 246000

2024 246000

2025 574000

Problem 1: The enacted income tax rates are 25% for 2021, 20% for 2022 through 2024, and 15% for 2025. If Blossom expects taxable income in future years, the deferred tax asset in Blossom's December 31, 2021 balance sheet should be

Option 1: $ 213200.
Option 2: $ 299300.
Option 3: $ 266500.
Option 4: $ 410000.

Reference no: EM132987315

Questions Cloud

Make a statement of retained earnings for the year : Prepare a statement of retained earnings for the year ended December 31, 2016. A material error in net income from a previous period was corrected.
What is the equation that the analysis provides : Linear regression. X Y2.2 3.41.7 2.6 2.7 3.73.1 3.8
What is the npv assuming a general inflation rate : What is the NPV assuming a general inflation rate of 8% and an increase in cash flow to $510 per year? A firm is considering a project with a cash flow.
Expanding from the united states to mexico : Present the currency structure of Mexico, including the size of the economy and investor base, in Mexico.
What deferred tax asset in blossom december balance sheet : If Blossom expects taxable income in future years, the deferred tax asset in Blossom's December 31, 2021 balance sheet should be
Explain the meaning of competitive advantage : Explain the meaning of competitive advantage in the context of strategic management in your own word.
Prepare a statement of retained earnings for year ended dec : Prepare a statement of retained earnings for the year ended December 31, 2016. The company earned a net income of $72,000
Contemporary human security issue : Write an op-ed piece of 750 words on a contemporary human security issue which is poverty.
Find what are expected rate of return and standard deviation : Assume a portfolio with weights of 0.60 in stocks and 0.40 in bonds. What are the expected rate of return and standard deviation of the portfolio

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd