Blue's Corps 2015 income statement showed pretax accounting income of $1,500,000. To compute the federal income tax liability, the following 2015 data are provided: Income from exempt municipal bonds $ 50,000 Depreciation deducted for tax purposes in excess of depreciation deducted for financial statement purposes Enacted corporate income tax rate 1,20,000 30% Assuming that there were no deferred tax liabilities as of the beginning of 2015, what is the income tax expense for 2015?(Note. General Account) A. Deferred tax liability of $21,000. B. Deferred tax asset of $21,000. C. Deferred tax asset of $36,000. D. Deferred tax liability of $36,000.
Blue's Corps 2015 income statement showed pretax accounting income of $1,500,000. To compute the federal income tax liability, the following 2015 data are provided: Income from exempt municipal bonds $ 50,000 Depreciation deducted for tax purposes in excess of depreciation deducted for financial statement purposes Enacted corporate income tax rate 1,20,000 30% Assuming that there were no deferred tax liabilities as of the beginning of 2015, what is the income tax expense for 2015?(Note. General Account) A. Deferred tax liability of $21,000. B. Deferred tax asset of $21,000. C. Deferred tax asset of $36,000. D. Deferred tax liability of $36,000.
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 47P
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Transcribed Image Text:Blue's Corps 2015 income statement showed pretax
accounting income of $1,500,000. To compute the federal
income tax liability, the following 2015 data are provided:
Income from exempt municipal bonds
$ 50,000
Depreciation deducted for tax purposes in excess of
depreciation deducted for financial statement purposes
Enacted corporate income tax rate
1,20,000
30%
Assuming that there were no deferred tax liabilities as of
the beginning of 2015, what is the income tax expense for
2015?(Note. General Account)
A. Deferred tax liability of $21,000.
B. Deferred tax asset of $21,000.
C. Deferred tax asset of $36,000.
D. Deferred tax liability of $36,000.
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