Woody corp had taxable income of 8000 in the current

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South-Western Federal Taxation 2020: Comprehensive
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Chapter 3 / Exercise 1
South-Western Federal Taxation 2020: Comprehensive
Maloney/Raabe/Young
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4. Woody Corp. had taxable income of $8,000 in the current year. The amount of MACRS depreciation was $3,000, while the amount of depreciation reported in the income statement was $1,000. Assuming no other differences between tax and accounting income, Woody's pretax accounting income was: a. $ 5,000. b. $ 6,000. c. $10,000. d. $11,000.
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South-Western Federal Taxation 2020: Comprehensive
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Chapter 3 / Exercise 1
South-Western Federal Taxation 2020: Comprehensive
Maloney/Raabe/Young
Expert Verified
Use the following to answer questions 5-7: Isaac Inc. began operations in January 2016. For certain of its property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2016, Isaac had $600 million in sales of this type. Scheduled collections for these sales are as follows: 2016 $ 60 million 2017 120 million 2018 120 million 2019 150 million 2020 150 million $600 million Assume that Isaac has a 30% income tax rate and that there were no other differences in income for financial statement and tax purposes. 5. Ignoring operating expenses, what deferred tax liability would Isaac report in its year-end 2016 balance sheet?

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