Vasquez Corp.'s 2017 income statement showed pretax accounting income of $2,040,000. To compute the federal incometax liability, the following 2017 data are provided:Income from exempt municipal bondsDepreciation deducted for tax purposes in excessof depreciation deducted for financial statement purposesEstimated federal income tax payments madeEnacted corporate income tax rate$ 110,000144,000330,00030%What amount of current federal income tax liability should be included in Vasquez's December 31, 2017 balance sheet?

Formula: Taxable amount = Adjusted Accounting income x Corporate income tax rate

Answered: Vasquez Corp.'s 2017 income statement…

Vasquez Corp.'s 2017 income statement showed pretax accounting income of $2,040,000. To compute the federal income tax liability, the following 2017 data are provided:

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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Please answer in good accounting form. Thankyou
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company reported $58,000 of depreciation expense on its income statement in 2015 and $32,000 in 2016. On its tax returns, Morgan deducted $84,000 for depreciation in 2015 and $94,000 in 2013. The 2016 tax return shows a tax obligation (liability) of $38,400 based on a 40% tax rate.Deferred Income Taxes What is the deferred tax liability for 2016?
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