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
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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