Calculate the deferred tax liability given the following items incurred in 2020 by Company B. Bonuses are tax deductible only in the year in which they are paid. Accounting Income $86,000 Depreciation Expense $6,500 Tax Depreciation $4,000 Income Not Recognized $4,700 in The Current Period For Tax Purposes 2019 Bonus Paid in $2,630 2020 Accrued Bonuses in $3,500 2020 Tax Rate 28% $350 $372 $425 $394
Calculate the deferred tax liability given the following items incurred in 2020 by Company B. Bonuses are tax deductible only in the year in which they are paid. Accounting Income $86,000 Depreciation Expense $6,500 Tax Depreciation $4,000 Income Not Recognized $4,700 in The Current Period For Tax Purposes 2019 Bonus Paid in $2,630 2020 Accrued Bonuses in $3,500 2020 Tax Rate 28% $350 $372 $425 $394
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 10P: Bonus Obligation and Income Tax Expense James Kimberley, president of National Motors, receives a...
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![Calculate the deferred tax liability given the following items incurred in 2020 by Company B.
Bonuses are tax deductible only in the year in which they are paid.
Accounting Income
$86,000
Depreciation Expense
$6,500
Tax Depreciation
$4,000
Income Not Recognized
$4,700
in The Current Period
For Tax Purposes
2019 Bonus Paid in
$2,630
2020
Accrued Bonuses in
$3,500
2020
Tax Rate
28%
$350
$372
$425
$394](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad0f4b3d-8a79-4d27-a115-b9d454c78eef%2F7f1b966e-fceb-4afa-8713-7975badfe6c2%2Fnvr5iii_processed.png&w=3840&q=75)
Transcribed Image Text:Calculate the deferred tax liability given the following items incurred in 2020 by Company B.
Bonuses are tax deductible only in the year in which they are paid.
Accounting Income
$86,000
Depreciation Expense
$6,500
Tax Depreciation
$4,000
Income Not Recognized
$4,700
in The Current Period
For Tax Purposes
2019 Bonus Paid in
$2,630
2020
Accrued Bonuses in
$3,500
2020
Tax Rate
28%
$350
$372
$425
$394
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