Ignoring operating expenses and additional sales in

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6.Ignoring operating expenses and additional sales in 2017, what deferred tax liability would Isaacreport in its year-end 2017 balance sheet?a.$54 millionb.$144 millionc.$126 milliond.$180 million
7.Suppose that, in 2017, legislation revised the income tax rates so that Isaac would be taxed in2018 and beyond at 40%, rather than 30%. Assume that there were no other differences inincome for financial statement and tax purposes. Ignoring operating expenses and additionalsales in 2017, what deferred tax liability would Isaac report in its year-end 2017 balance sheet?
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Chapter 3 / Exercise 1
South-Western Federal Taxation 2020: Comprehensive
Maloney/Raabe/Young
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Information for Kent Corp. for the year 2016:Reconciliation of pretax accounting income and taxable income:Pretax accounting income$180,000Permanent differences(15,000)165,000Temporary difference-depreciation(12,000)Taxable income$153,000Cumulative future taxable amounts all from depreciation temporary differences:As of December 31, 2015$13,000As of December 31, 2016$25,000The enacted tax rate was 30% for 2015 and thereafter.8.What should be the balance in Kent's deferred tax liability account as of December 31, 2016?

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Term
Fall
Professor
mcdonalds
Tags
Accounting, Financial Accounting, Balance Sheet, Taxation in the United States, Generally Accepted Accounting Principles
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
South-Western Federal Taxation 2020: Comprehensive
The document you are viewing contains questions related to this textbook.
Chapter 3 / Exercise 1
South-Western Federal Taxation 2020: Comprehensive
Maloney/Raabe/Young
Expert Verified

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