Feagler Company's current income taxes payable related to its taxable income for 2020 is $460,000. In addition, Feagler's deferred tax asset decreased $20,000 during 2020. What is Feagler's income tax expense for 2020?

Feagler Company's current income taxes payable related to its taxable income for 2020 is $460,000. In addition, Feagler's deferred tax asset decreased $20,000 during 2020. What is Feagler's income tax expense for 2020?

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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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

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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