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 120,000 Enacted corporate income tax rate 30% Assuming that there were no deferred tax liabilities as of the beginning of 2015, what is the income tax expense for 2015? 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 120,000 Enacted corporate income tax rate 30% Assuming that there were no deferred tax liabilities as of the beginning of 2015, what is the income tax expense for 2015? 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
120,000
Enacted corporate income tax rate
30%
Assuming that there were no deferred tax liabilities as of the
beginning of 2015, what is the income tax expense for 2015?
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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