I have a Becker review question is part of my homework. I can't find any solutions that match my options to check my work. The two checks are Two independent situations are described below. Each situation has future deductibel and/or future taxable amounts producted by temporary differences. Situation 1 2 Taxable Income 40,000 80,000 Amounts at year-end Future Deductible amt 5,000 10,000 Future at Beg of year 0.0 5,000 Bal at Beg of year Deferred tax asset 1,000 4,000 Deferred tax liab 0.0 1,000 Enacted state and Federal tax rate is 25%. Determine teh income tax expense. options are a 10,000 and 20,000 b 9,750 and 21,750 c 250 and 500 d 0 and 0 I chose answer b Are you able to confirm if this is correct?
I have a Becker review question is part of my homework. I can't find any solutions that match my options to check my work. The two checks are Two independent situations are described below. Each situation has future deductibel and/or future taxable amounts producted by temporary differences.
Situation 1 2
Taxable Income 40,000 80,000
Amounts at year-end
Future Deductible amt 5,000 10,000
Future at Beg of year 0.0 5,000
Bal at Beg of year
Deferred tax liab 0.0 1,000
Enacted state and Federal tax rate is 25%. Determine teh income tax expense.
options are
a 10,000 and 20,000
b 9,750 and 21,750
c 250 and 500
d 0 and 0
I chose answer b
Are you able to confirm if this is correct?
| Particulars | 1 | 2 |
| Taxable Income | 40,000 | 80,000 |
| Future Deductible amount | 5000 | 10,000 |
| Deferred tax asset | 1000 | 4000 |
| Federal Tax Rate | 25% | 25% |
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