In its December 31, 2016, balance sheet, Shin Co. had income taxes payable of $13,000 and a current deferred tax asset of $20,000 before determining the need for a valuation account. Shin had reported a current deferred tax asset of $15,000 at December 31, 2015. No estimated tax payments were made during 2016. At December 31, 2016, Shin determined that it was more likely than not that 10% of the deferred tax asset would not be realized. In its 2016 income statement, what amount should Shin report as total income tax expense? a. $ 8,000 b. $ 8,500 c. $10,000 d. $13,000
In its December 31, 2016, balance sheet, Shin Co. had income taxes payable of $13,000 and a current deferred tax asset of $20,000 before determining the need for a valuation account. Shin had reported a current deferred tax asset of $15,000 at December 31, 2015. No estimated tax payments were made during 2016. At December 31, 2016, Shin determined that it was more likely than not that 10% of the deferred tax asset would not be realized. In its 2016 income statement, what amount should Shin report as total income tax expense? a. $ 8,000 b. $ 8,500 c. $10,000 d. $13,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In its December 31, 2016,
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