Blue Spruce Corporation has a taxable temporary difference related to net book value versus UCC of $719,000 at December 31, 2023. This difference will reverse as follows: 2024, $50,300; 2025, $314,000; and 2026, $354,700. Enacted tax rates are 25% for 2024 and 2025, and 30% for 2026. Calculate the amount that Blue Spruce should report as a deferred tax asset or liability at December 31, 2023. Deferred tax ✓to be reported $ If the tax rate for 2026 had been 25%, and unexpectedly increased to 30% at the end of 2023, how would the increase in the tax rate for 2026 have affected the deferred tax asset or liability, and the related expense, in 2023? The deferred tax expense and liability would in 2023 by $
Blue Spruce Corporation has a taxable temporary difference related to net book value versus UCC of $719,000 at December 31, 2023. This difference will reverse as follows: 2024, $50,300; 2025, $314,000; and 2026, $354,700. Enacted tax rates are 25% for 2024 and 2025, and 30% for 2026. Calculate the amount that Blue Spruce should report as a deferred tax asset or liability at December 31, 2023. Deferred tax ✓to be reported $ If the tax rate for 2026 had been 25%, and unexpectedly increased to 30% at the end of 2023, how would the increase in the tax rate for 2026 have affected the deferred tax asset or liability, and the related expense, in 2023? The deferred tax expense and liability would in 2023 by $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blue Spruce Corporation has a taxable temporary difference related to net book value versus UCC of $719,000 at December 31,
2023. This difference will reverse as follows: 2024, $50,300; 2025, $314,000; and 2026, $354,700. Enacted tax rates are 25% for
2024 and 2025, and 30% for 2026.
Calculate the amount that Blue Spruce should report as a deferred tax asset or liability at December 31, 2023.
Deferred tax
to be reported
If the tax rate for 2026 had been 25%, and unexpectedly increased to 30% at the end of 2023, how would the increase in the tax rate
for 2026 have affected the deferred tax asset or liability, and the related expense, in 2023?
The deferred tax expense and liability would
in 2023 by $
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