Mitchell Corporation prepared the following reconciliation for 2021, its first year of operations: Pretax financial income for 2021 :900,000 Tax exempt interest: (75,000) Originating Temporary difference:(225,000) Taxable income:600,000 The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 2021 is 35% What amount should be reported in its 2011 income statement as the deferred portion of the income tax expense Select one: O A. $90,000 credit O B. $120,000 debit •O C. $105,000 credit O D. $90,000 debit

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A: Deferred tax asset is like a prepaid tax the benefit of which will be received in future and a…

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Q: Bronson Industries reported a deferred tax liability of $13.5 million for the year ended December…

A: The deferred tax obligation refers to the tax amount on a certain taxable amount that has not yet…

Q: In its 2021 income statement, Crane Corp. reported depreciation of $3600000 and interest revenue on…

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A: A journal entry in accounting is a documentation of a business's financial transaction. It entails…

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A: Depreciation expense is a kind of operating expense that is reported at the end of the periodic…

Q: Wittco Company reports pretax GAAP income in 2020, its first year of operations, of $180,000.…

A: The deferred tax is a future tax liability or asset, This tax is two types of deferred tax liability…

Q: For 2023, its first year of operations, Corning Howell's reconciliation of pretax accounting income…

A: The temporary difference will create a deferred tax liability, since it results in less taxes being…

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A: SOlution: Deferred income tax liability = Future taxable amount * Tax rate of 2022

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A: Future taxable amounts are differences between accounting and taxable income that result in future…

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A: Deferred tax liability arises when Book profit is higher than the taxable profit. In the given…

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A: Compute the amounts to record income tax as follows: Result:

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A: Taxable income for a corporation, we have to begin with the financial income as determined under…

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A: Deferred tax liability = cumulative temporary difference x tax rate -  balance in the Deferred Tax…

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A: Income tax is the amount of tax which is paid by the entity on its income. It is computed on the…

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A: Solution: Introduction: Deferred tax is an item on the balance sheet of the entity, for excess…

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A: Solution: Deferred tax is an item on the balance sheet of the entity, for excess payments, advance…

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A: To calculate the deferred income tax liability as of the end of Tringali Corporation's first year of…

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Q: During 2020, Marigold Co.’s first year of operations, the company reports pretax financial income at…

A: Formulas:

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A: A deferred tax asset represents the overpayment or advance payment of taxes. It is the opposite of a…

Q: s pretax financial income of $68,400 for 2020. The following items cause taxable income to be…

A: The answers have been mentioned below.

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A: Taxable income = Pretax financial income + Excess rent collected + Fine paid for pollution