Vai At the end of 2019, Concord Corporation reported a deferred tax liability of $43,000. At the end of 2020, the company had $245,000of temporary differences related to property, plant, and equipment. Depreciation expense on this property, plant, and equipment hasbeen lower than the CCA claimed on Concord's income tax returns. The resulting future taxable amounts are as follows:2021202220232024(a)$79,00063,00056,00047,000The 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 2023and later. Taxable income is expected in all future years.$245,000Calculate the deferred tax account balance at December 31, 2020.(c)Deferred taxSave for LaterAttempts: 0 of 1 used.(b)The parts of this question must be completed in order. This part will be available when you complete the part above.Submit Answer

The amount of income taxes due in future periods as a result of temporary taxable differences is…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Vai

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
Save for Later
Attempts: 0 of 1 used.
(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
Submit Answer

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