Mini, Inc., earns pretax book net income of $1,828,000 in 2018. Mini deducted $190,400 in bad debt expense for book purposes. This expense is not yet deductible for tax purposes. Mini reports $1,919,400 of pretax book net income in 2019. Mini did not deduct any bad debt expense for book purposes in 2019 but did deduct $142,800 in bad debt expense for tax purposes. Mini reports no other temporary or permanent differences. Assuming that the pertinent U.S. Federal corporate income tax rate is 21%, and Mini earns an after-tax rate of return on capital of 8%. a. The 2019 end-of-year balance in Mini’s deferred tax asset and deferred tax liability balance sheet accounts. If an amount is zero, enter "0". If required, round your answer to nearest whole value. 2019 a. Deferred tax asset account balance ______ b. Deferred tax liability account balance ______ b. The cost to Mini of the deferral of the bad debt deduction, considering the time value of money. Mini earns an after-tax rate of return on capital of 8%. The present value factor at 8% is 0.9259. $fill in the blank 3
Mini, Inc., earns pretax book net income of $1,828,000 in 2018. Mini deducted $190,400 in
Mini reports $1,919,400 of pretax book net income in 2019. Mini did not deduct any bad debt expense for book purposes in 2019 but did deduct $142,800 in bad debt expense for tax purposes. Mini reports no other temporary or permanent differences. Assuming that the pertinent U.S. Federal corporate income tax rate is 21%, and Mini earns an after-tax
a. The 2019 end-of-year balance in Mini’s
If an amount is zero, enter "0". If required, round your answer to nearest whole value.
|
b. The cost to Mini of the deferral of the bad debt deduction, considering the time value of money. Mini earns an after-tax rate of return on capital of 8%. The present value factor at 8% is 0.9259.
$fill in the blank 3
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