The following information is taken from ABC Company's 2019 financial records: P 1,500,000 Pretax accounting income Accrued warranty expense in excess of actual warranty expenditures Excess tax depreciation 24,500 (45,000) P 1,479,500 Taxable income
The following information is taken from ABC Company's 2019 financial records: P 1,500,000 Pretax accounting income Accrued warranty expense in excess of actual warranty expenditures Excess tax depreciation 24,500 (45,000) P 1,479,500 Taxable income
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 56P
Related questions
Question
- How much
deferred tax liability must ABC report as of December 31,2020? - How much deferred tax liability must ABC report as of December 31,2019?
- How much
deferred tax asset must ABC report as of December 31,2019?
![The following information is taken from ABC Company's 2019 financial records:
Pretax accounting income
Accrued warranty expense in excess of actual warranty expenditures
Excess tax depreciation
P 1,500,000
24,500
(45,000)
P 1,479,500
Taxable income
The temporary differences were created entirely in 2019. The future deductible amount is
expected to reverse in 2020 and the future taxable amount will reverse in equal amounts in the
next 3 years.
Tax rates are: 30% in 2019; 32% in 2020 ; 34% in 2021 and 35% in 2022.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d9f9ab4-e0d4-422b-ace8-7e45eb93ec2e%2F7eb010ad-0ccf-4e95-b688-f174ee886111%2Fbicegat_processed.png&w=3840&q=75)
Transcribed Image Text:The following information is taken from ABC Company's 2019 financial records:
Pretax accounting income
Accrued warranty expense in excess of actual warranty expenditures
Excess tax depreciation
P 1,500,000
24,500
(45,000)
P 1,479,500
Taxable income
The temporary differences were created entirely in 2019. The future deductible amount is
expected to reverse in 2020 and the future taxable amount will reverse in equal amounts in the
next 3 years.
Tax rates are: 30% in 2019; 32% in 2020 ; 34% in 2021 and 35% in 2022.
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