At the beginning of 2025, Ivanhoe, Inc. had a deferred tax asset of $21000 and a deferred tax liability of $31000. Pre-tax accounting income for 2025 was $1520000 and the enacted tax rate is 20%. The following items are included in Ivanhoe's pre-tax income: Interest income from municipal bonds Accrued warranty costs, estimated to be paid in 2026 Operating loss carryforward Installment sales profit, will be taxed in 2026 Prepaid rent expense, will be used in 2026 $122000 O $26400. O $38600. O $78800. O $68600. 262000 192000 132000 61000 The ending balance in Ivanhoe's deferred tax liability account at December 31, 2025 is
At the beginning of 2025, Ivanhoe, Inc. had a deferred tax asset of $21000 and a deferred tax liability of $31000. Pre-tax accounting income for 2025 was $1520000 and the enacted tax rate is 20%. The following items are included in Ivanhoe's pre-tax income: Interest income from municipal bonds Accrued warranty costs, estimated to be paid in 2026 Operating loss carryforward Installment sales profit, will be taxed in 2026 Prepaid rent expense, will be used in 2026 $122000 O $26400. O $38600. O $78800. O $68600. 262000 192000 132000 61000 The ending balance in Ivanhoe's deferred tax liability account at December 31, 2025 is
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 5E
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