Sheridan Inc's only temporary difference at the beginning and end of 2024 is caused by a $3.54 million deferred gain for tax purpose For an installment sale of a plant asset, and the related receivable (only one-half of which is classified as a current asset) is due in equ installments in 2025 and 2026. The related deferred tax liability at the beginning of the year is $1,062,000. In the third quarter of 2024, a new tax rate of 20% is enacted into law and is scheduled to become effective for 2026. Taxable income for 2024 is $5,900,00 and taxable income is expected in all future years. (a) Your answer is incorrect. Determine the amount reported as a deferred tax liability at the end of 2024.

Sheridan Inc's only temporary difference at the beginning and end of 2024 is caused by a $3.54 million deferred gain for tax purpose For an installment sale of a plant asset, and the related receivable (only one-half of which is classified as a current asset) is due in equ installments in 2025 and 2026. The related deferred tax liability at the beginning of the year is $1,062,000. In the third quarter of 2024, a new tax rate of 20% is enacted into law and is scheduled to become effective for 2026. Taxable income for 2024 is $5,900,00 and taxable income is expected in all future years. (a) Your answer is incorrect. Determine the amount reported as a deferred tax liability at the end of 2024.

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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PT BCD has a deferred tax asset account with a balance of Rp300.000 at the end of 2018 due to a single cumulative temporary difference of Rp750.000. At the end of 2019, this same temporary difference has increased to a cumulative amount of Rp1.000.000. Taxable income for 2019 is Rp1.700.000. The tax rate is 40% for all years. Assuming it’s probable that 70% of the deferred tax asset will be realized, what amount will be reported on ABC’s statement of financial position for the deferred tax asset at December 31, 2019?