Blossom Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. Profits of $1070000 recognized for books in 2024 will be collected in the following years: 2025 2026 2027 Collection of Profits $174000 $374000 $522000 The enacted tax rates are: 30% for 2024, 25% for 2025, and 20% for 2026 and 2027. Taxable income is expected in all future years. What amount should be included in the December 31, 2024 balance sheet for the deferred tax liability related to the above temporary difference? $43500 $179200 $222700 $321000
Blossom Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. Profits of $1070000 recognized for books in 2024 will be collected in the following years: 2025 2026 2027 Collection of Profits $174000 $374000 $522000 The enacted tax rates are: 30% for 2024, 25% for 2025, and 20% for 2026 and 2027. Taxable income is expected in all future years. What amount should be included in the December 31, 2024 balance sheet for the deferred tax liability related to the above temporary difference? $43500 $179200 $222700 $321000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter17: Business Tax Credits And The Alternative Minimum Tax
Section: Chapter Questions
Problem 1BD
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