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deferred tax asset a deferred tax liability

deferred tax asset a deferred tax liability

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Elephant, Inc. has an enacted tax rate of 20%. The following items are included in Elephant's pre-tax income: Interest income from municipal bonds Accrued warranty costs, estimated to be paid next year Excess tax depreciation over book depreciation Prepaid rent expense, will be used in 2022 $120,000 $260,000 $130,000 $60,000 a. The ending balance in Elephant, Inc.'s deferred tax asset at December 31, 2021 is? b. The ending balance in Elephant, Inc.'s deferred tax liability at December 31, 2021 is
Transcribed Image Text:2. Elephant, Inc. has an enacted tax rate of 20%. The following items are included in Elephant's pre-tax income: Interest income from municipal bonds Accrued warranty costs, estimated to be paid next year Excess tax depreciation over book depreciation Prepaid rent expense, will be used in 2022 $120,000 $260,000 $130,000 $60,000 a. The ending balance in Elephant, Inc.'s deferred tax asset at December 31, 2021 is? b. The ending balance in Elephant, Inc.'s deferred tax liability at December 31, 2021 is
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