083Q6 - The firm’s tax rate in Year 2 was 25 In Year 3...

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Name_____________________4-Digit #_________________Section______________ Accounting for Income Taxes: [083Q6] The Brooke Company was founded at the start of Year 1. The tax rates vary and are shown for all four years. All differences here are temporary. Each year’s tax rate is expected to continue into the future years. In Year 1, the firm’s financial income was $380 and exceeded its taxable income by $100. The firm’s tax rate in Year 1 was 30%. In Year 2, the firm’s taxable income was $320 and exceeded its financial income by $60.
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Unformatted text preview: The firm’s tax rate in Year 2 was 25%. In Year 3, the firm’s financial income was $320 and exceeded its taxable income by $80. The firm’s tax rate in Year 3 was 35%. In Year 4, the firm’s taxable income was $360 and exceeded its financial income by $40. The firm’s tax rate in Year 4 was 30%. Required: Year 1 Year 2 Year 3 Year 4 CTE (credit) $_____ $_____ $_____ $_____ DTE (credit) _____ _____ _____ _____ Net Income (Net Loss) _____ _____ _____ _____...
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