What is the amount of the asset or liability e 832

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Unformatted text preview: the end of the first year of opera6ons, Yosef reported $750,000 income before income taxes on its income statement but only $660,000 taxable income on its tax return. This difference arose because $90,000 in income earned during 2012 was not yet taxable according to the income tax regula6ons. The tax rate is $35%. 1. Compute the amount of income tax that Yosef legally owes for taxable income generated during 2012. 2. Compute the amount of income tax expense to be reported on Yosef's income statement for 2012. 3. State whether Yosef has a deferred income tax asset or a deferred income tax liability as of the end of 2012. What is the amount of the asset or liability? E 8 ­32 Con6ngent Liabili6es Ryan Company is involved in the following legal ma^er: a. A customer is suing Rayn for allegedly selling a faulty and dangerous product. Rayn's a^orneys believe that there is a 40% chance o...
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