I won't to this question answer general Accounting Lyons Company deducts insurance expenses of $105,000 for taxpurposes in 2019, but the expense is not yet recognized foraccounting purposes. In 2020, 2021, and 2022, no insuranceexpense will be deducted for tax purposes, but $35,000 ofinsurance expense will be reported for accounting purposes in eachof these years. Lyons Company has a tax rate of 21% and a taxableincome of $225,000 at the end of 2019. There were no deferredtaxes at the beginning of 2019.What is the amount of income tax expense for 2019?a. $69,300b. $54,600c. $105,000d. $90,000

Step 1: Define Income Tax ExpenseThe amount of tax that an individual or entity needs to pay over…

Answered: Lyons Company deducts insurance…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 32P

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Ironwood Corporation has ordinary taxable income of $65,000 in 2019, and a short-term capital loss of $15,000. What is the corporation's tax liability for 2019? $7,500 $5,250 $10,500 $13,650 None of the above
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Oriole Company deducts insurance expense of $183000 for tax purposes in 2021, but the expense is not yet recognized for accounting purposes. In 2022, 2023, and 2024, no insurance expense will be deducted for tax purposes, but $61000 of insurance expense will be reported for accounting purposes in each of these years. Oriole Company has a tax rate of 20% and income taxes payable of $162000 at the end of 2021. There were no deferred taxes at the beginning of 2021.What is the amount of the deferred tax liability at the end of 2021? $32400 $0 $10500 $36600
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