Problem 1 - 320000 120000 40000 Income tax expense 288,000...

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Brittany Burkhart Problem 1 Part A Deferred Tax Asset 270000 Benefit Due to Loss Carryforward (Income Tax Expense) Part B Income Tax Expense 108000 Income Tax Payable 162000 Deferred Tax Asset Allowance to Reduce Deferred Tax Asset to Expected Realizable Value 270000 Benefit Due to Loss Carryfoward(Income Tax Expense) Problem 2 Future Years 2008 2009 2010 Total Future Taxable Amounts 800,000 300,000 100,000 Tax Rate 40% 40% 40% Deferred Tax liability at the end of 2007
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Unformatted text preview: 320000 120000 40000 Income tax expense 288,000 Income Tax Payable 240000 Deferred Tax Liability 48000 Work: cumulative temporary difference 150,000 2007 2008 2009 2010 Taxable Income 600,000 Add: Extra Depreciation 1,350,000 450,000 450,000 450,000 Less: 1,950,000 Extra Expenses 1,200,000 800,000 300,000 100,000 750,000 Taxable Income 600,000 tax rate 40% Tax Payable 240,000 270000 270000 270000...
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Problem 1 - 320000 120000 40000 Income tax expense 288,000...

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