A state collects $270,000,000 in withheld and estimated tax payments during the 2022 calendar year and an additional $15,000,000 in withheld and estimated tax payments in January 2023 applicable to its 2022 calendar year. The state also expects to receive $6,000,000 in tax payments and refund claims of $4,500,000 million for 2022 income tax returns filed by April 15, 2023. The state considers payments received with income tax returns filed by April 15 to be available and refund claims received by that date are considered liabilities for 2022. How much revenue should the state report for its year ending December 31, 2022? Select one: a. $286,500,000 b. $285,000,000 c. $291,000,000 d. $270,000,000

A state collects $270,000,000 in withheld and estimated tax payments during the 2022 calendar year and an additional $15,000,000 in withheld and estimated tax payments in January 2023 applicable to its 2022 calendar year. The state also expects to receive $6,000,000 in tax payments and refund claims of $4,500,000 million for 2022 income tax returns filed by April 15, 2023. The state considers payments received with income tax returns filed by April 15 to be available and refund claims received by that date are considered liabilities for 2022. How much revenue should the state report for its year ending December 31, 2022? Select one: a. $286,500,000 b. $285,000,000 c. $291,000,000 d. $270,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Isaac Inc. began operations in January 2021. For some 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 2021, Isaac had $676 million in sales of this type. Scheduled collections for these sales are as follows: 2021 $ 83 million 2022 137 million 2023 129 million 2024 162 million 2025 165 million $ 676 million Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses, what deferred tax liability would Isaac report in its year-end 2021 balance sheet?
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