Brighton Corp's 2022 income statement showed pretax accounting income of $1,800,000. To compute the federal income tax liability, the following 2022 data are provided: Description Amount Income from tax-exempt municipal $60,000 bonds Depreciation deducted for tax $150,000 purposes in excess of depreciation deducted for financial statement purposes Enacted corporate income tax rate 28% Assuming there were no deferred tax liabilities at the beginning of 2022, what is the income tax expense for 2022? a. Deferred tax liability of $42,000. b. Deferred tax asset of $42,000. c. Deferred tax asset of $50,000. d. Deferred tax liability of $50,000.
Brighton Corp's 2022 income statement showed pretax accounting income of $1,800,000. To compute the federal income tax liability, the following 2022 data are provided: Description Amount Income from tax-exempt municipal $60,000 bonds Depreciation deducted for tax $150,000 purposes in excess of depreciation deducted for financial statement purposes Enacted corporate income tax rate 28% Assuming there were no deferred tax liabilities at the beginning of 2022, what is the income tax expense for 2022? a. Deferred tax liability of $42,000. b. Deferred tax asset of $42,000. c. Deferred tax asset of $50,000. d. Deferred tax liability of $50,000.
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 47P
Related questions
Question
What is the income tax expense for 2022?
Transcribed Image Text:Brighton Corp's 2022 income statement showed pretax accounting income
of $1,800,000. To compute the federal income tax liability, the following
2022 data are provided:
Description
Amount
Income from tax-exempt municipal $60,000
bonds
Depreciation
deducted for tax $150,000
purposes in excess of depreciation
deducted for financial statement
purposes
Enacted corporate income tax rate
28%
Assuming there were no deferred tax liabilities at the beginning of 2022,
what is the income tax expense for 2022?
a. Deferred tax liability of $42,000.
b. Deferred tax asset of $42,000.
c. Deferred tax asset of $50,000.
d. Deferred tax liability of $50,000.
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