A company had zero Taxable Income in 2010, Taxable Income of $10,000 in 2011, and a Net Operating Loss (NOL) of $20,000 in 2012. This is the company's first-ever NOL. The company thinks that it is more likely than not that it will have taxable income in the future before the tax loss carryforward would expire. The statutory tax rate is 35.0%.

A company had zero Taxable Income in 2010, Taxable Income of $10,000 in 2011, and a Net Operating Loss (NOL) of $20,000 in 2012. This is the company's first-ever NOL. The company thinks that it is more likely than not that it will have taxable income in the future before the tax loss carryforward would expire. The statutory tax rate is 35.0%.

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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Sheridan Corporation reported $230000 in revenues in its 2021 financial statements, of which $91100 will not be included in the tax return until 2022. The enacted tax rate is 40% for 2021 and 35% for 2022. What amount should Sheridan report for deferred income tax liability in its balance sheet at December 31, 2021? O $55560 O $48615 O $36440 O $31885
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Teal Company reports pretax financial income of $72,600 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $17,200. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $20,300. 3. Fines for pollution appear as an expense of $9,900 on the income statement. Teal’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. (a) Compute taxable income and income taxes payable for 2020. Taxable income $enter a dollar amount Income taxes payable $enter a dollar amount
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