At the end of 2019, Concord Corporation reported a deferred tax liability of $43,000. At the end of 2020, the company had $245,000 of temporary differences related to property, plant, and equipment. Depreciation expense on this property, plant, and equipment has been lower than the CCA claimed on Concord's income tax returns. The resulting future taxable amounts are as follows: 2021 2022 2023 2024 $79,000 63,000 56,000 47,000 $245,000 The tax rates enacted as of the beginning of 2019 are as follows: 31% for 2019 and 2020 ; 30 % for 2021 and 2022; and 25% for 2023 and later. Taxable income is expected in all future years. (a) Calculate the deferred tax account balance at December 31, 2020. Deferred tax
At the end of 2019, Concord Corporation reported a deferred tax liability of $43,000. At the end of 2020, the company had $245,000 of temporary differences related to property, plant, and equipment. Depreciation expense on this property, plant, and equipment has been lower than the CCA claimed on Concord's income tax returns. The resulting future taxable amounts are as follows: 2021 2022 2023 2024 $79,000 63,000 56,000 47,000 $245,000 The tax rates enacted as of the beginning of 2019 are as follows: 31% for 2019 and 2020 ; 30 % for 2021 and 2022; and 25% for 2023 and later. Taxable income is expected in all future years. (a) Calculate the deferred tax account balance at December 31, 2020. Deferred tax
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:At the end of 2019, Concord Corporation reported a deferred tax liability of $43,000. At the end of 2020, the company had $245,000
of temporary differences related to property, plant, and equipment. Depreciation expense on this property, plant, and equipment has
been lower than the CCA claimed on Concord's income tax returns. The resulting future taxable amounts are as follows:
2021
2022
2023
2024
(a)
$79,000
63,000
56,000
47,000
The tax rates enacted as of the beginning of 2019 are as follows: 31% for 2019 and 2020; 30% for 2021 and 2022; and 25% for 2023
and later. Taxable income is expected in all future years.
$245,000
Calculate the deferred tax account balance at December 31, 2020.
(c)
Deferred tax
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