Compute the deferred tax items created (if any) under each of the following scenarios. Wintrust also owns 90% of Naperville Bank and Trust, a local bank in illinois. Naperville Reports 50,000$ net income and pays 35,000$ in cash dividends to its shareholders. How much deferred tax liabilities (assets) is recognized on the consolidated balance sheet?

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Q: If Papa and Bambina file separate income tax returns, what deferred income tax is created?

A: Answer:   $8,000

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A: The taxable income can be calculated with the help of below expression:

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A: Current portion of provision for income taxes  = Taxable income x income tax rate

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A: Formula used:

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A:

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A:

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