Blossom Corporation's partial income statement after its first year of operations is as follows: Income before income taxes     $3726000 Income tax expense       Current $1015000     Deferred        88200   1103200 Net income     $2622800 Blossom uses the straight-line method of depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The amount charged to depreciation expense on its books this year was $2780000. No other differences existed between book income and taxable income except for the amount of depreciation. Assuming a 20% tax rate, what amount was deducted for depreciation on the corporation's tax return for the current year?

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A: We need to use the following equations to solve the above problems

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A: Pretax accounting income = taxable income - depreciation for accounting

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A: The deferred tax asset or liability is created out of timing difference. There may be some items…

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A: Given, Book income before tax=750,000 Taxable temporary difference=100,000 Deductible temporary…

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A: Compute the income before income taxes on the financial statements:

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Q: The following information relates to Sustagoon Ltd. Profit before tax for the year ended 30 June…

A: Income Statement: Profit and loss statements are financial statements that reflect the revenue and…

Q: for the Zeff Company prepared first year of operations: 1,600,000 Pretax financial income Nontaxable…

A: Income tax is calculated by multiplying the taxable income by the tax rate.

Q: 9. Stone Co. income before income taxes for the year. Stone's 20x1 tax perations in 20x1 and…

A: solution : concept temporary difference               The difference in the net profit on books of…

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A: Solution: Taxable income = $265,000 Taxable temporary differences = $20,000 Tax rate = 25%

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A: Income tax expense refers to the amount of tax that a company expects to pay based on its taxable…

Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

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A: Introduction           Deferred tax refers to the difference between tax computed as per the…

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A: Discontinued Operations are the operations of the business discontinued by the organization. The…

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A: Income tax liability will be calculated on the taxable income of the business. There may be some…

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A: Pretax book income or earnings refers to the income of company after all the operating expenses…

Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: Income tax expense refers to the amount of tax that a company expects to pay based on its taxable…

Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: Income tax payable is the Amount of tax liability on taxable income which is to be paid.

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.