Blossom, Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. Installment income of $3500000 will be collected in the following years when the enacted tax rates are: Collection of Income Enacted Tax Rates 2020 $400000 25% 2021 700000 20% 2022 990000 20% 2023 1410000 15% The installment income is Blossom's only temporary difference. What amount should be included in the deferred income tax liability in Blossom's December 31, 2020 balance sheet? $669500 $875000 $549500 $775000
Blossom, Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. Installment income of $3500000 will be collected in the following years when the enacted tax rates are: Collection of Income Enacted Tax Rates 2020 $400000 25% 2021 700000 20% 2022 990000 20% 2023 1410000 15% The installment income is Blossom's only temporary difference. What amount should be included in the deferred income tax liability in Blossom's December 31, 2020 balance sheet? $669500 $875000 $549500 $775000
Chapter24: Multistate Corporate Taxation
Section: Chapter Questions
Problem 1BCRQ
Related questions
Question
100%
Blossom, Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. Installment income of $3500000 will be collected in the following years when the enacted tax rates are:
Collection of Income | Enacted Tax Rates | |
2020 | $400000 | 25% |
2021 | 700000 | 20% |
2022 | 990000 | 20% |
2023 | 1410000 | 15% |
The installment income is Blossom's only temporary difference. What amount should be included in the
$669500
$875000
$549500
$775000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT