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or the following years (i.e., there were no permanent or temporary differences):

or the following years (i.e., there were no permanent or temporary differences):

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A 51.

MC17-6. The pretax financial income and taxable income of Zeus Corporation were the same for the following years (i.e., there were no permanent or temporary differences): Year 4 Year 5 Year 6 Year 7 a. $25,000 What amount of income tax benefit will Zeus Corporation record in Year 6 under U.S. GAAP? Assume that the Year 7 tax rate is known in Year 6 and is enacted at the beginning of Year 7. b. $23,400 c. $21,000 Income $ 20,000 15,000 (100,000) 120,000 d. $25,200 Tax Rate (%) 30% 25 25 21
Transcribed Image Text:MC17-6. The pretax financial income and taxable income of Zeus Corporation were the same for the following years (i.e., there were no permanent or temporary differences): Year 4 Year 5 Year 6 Year 7 a. $25,000 What amount of income tax benefit will Zeus Corporation record in Year 6 under U.S. GAAP? Assume that the Year 7 tax rate is known in Year 6 and is enacted at the beginning of Year 7. b. $23,400 c. $21,000 Income $ 20,000 15,000 (100,000) 120,000 d. $25,200 Tax Rate (%) 30% 25 25 21
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