Feagler Company’s current income taxes payable relatedto its taxable income for 2017 is $460,000. In addition,Feagler’s deferred tax asset decreased $20,000 during2017. What is Feagler’s income tax expense for 2017?

Feagler Company’s current income taxes payable relatedto its taxable income for 2017 is $460,000. In addition,Feagler’s deferred tax asset decreased $20,000 during2017. What is Feagler’s income tax expense for 2017?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 2MCQ: Tayla Corporation generated $400,000 of taxable income in the 2019. What is Tayla's corporate tax...

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Question

Feagler Company’s current income taxes payable related
to its taxable income for 2017 is $460,000. In addition,
Feagler’s deferred tax asset decreased $20,000 during
2017. What is Feagler’s income tax expense for 2017?

Definition Definition Estimated future tax made while preparing accounts. Deferred tax is estimated based on past and present transactions from financial statements. It is not the actual tax that needs to be paid or is refundable from the revenue authority; it is an accounting entry. It is necessary to account for deferred tax due to difference between accounting profits and taxable profits.

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