Mini, Inc., earns pretax book net income of $750,000 in 2021, its first year of operations. Mini recognized $20,000 in bad debt expense for book purposes. This expense is not yet deductible for tax purposes. Mini reports $800,000 of pretax book net income in 2022. Mini did not recognize any bad debt expense for book purposes in 2022 but did deduct $15,000 in bad debt expense for tax purposes. Mini reports no other temporary or permanent book-tax differences. The applicable U.S. Federal corporate income tax rate is 21%, and Mini earns an after-tax rate of return on capital of 4%. Enter below the 2022 end-of-year balance in Mini's deferred tax benefit or expense and total tax benefit or expense.
Mini, Inc., earns pretax book net income of $750,000 in 2021, its first year of operations. Mini recognized $20,000 in bad debt expense for book purposes. This expense is not yet deductible for tax purposes.
Mini reports $800,000 of pretax book net income in 2022. Mini did not recognize any bad debt expense for book purposes in 2022 but did deduct $15,000 in bad debt expense for tax purposes. Mini reports no other temporary or permanent book-tax differences. The applicable U.S. Federal corporate income tax rate is 21%, and Mini earns an after-tax
Enter below the 2022 end-of-year balance in Mini's
If an amount is zero, enter "0". If required, round your answers to the nearest dollar.
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