In 2022, the enacted tax rate is 25% for all current and future years, and Hynde Corp., in its first year of operations, reports $502,000 of pretax financial income and $469,000 of taxable income. In 2023, an enacted law changes the tax rate for all current and future years to 20%, and Hynde has $520,000 of pretax financial income and $567,500 of taxable income. All book-tax differences are due to one temporary difference for depreciation. What deferred tax asset (enter as a positive number) or deferred tax liability (enter as a negative number) will Hynde report on its December 31, 2023 balance sheet?
In 2022, the enacted tax rate is 25% for all current and future years, and Hynde Corp., in its first year of operations, reports $502,000 of pretax financial income and $469,000 of taxable income. In 2023, an enacted law changes the tax rate for all current and future years to 20%, and Hynde has $520,000 of pretax financial income and $567,500 of taxable income. All book-tax differences are due to one temporary difference for depreciation. What deferred tax asset (enter as a positive number) or deferred tax liability (enter as a negative number) will Hynde report on its December 31, 2023 balance sheet?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 3RE: In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During...
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In 2022, the enacted tax rate is 25% for all current and future years, and Hynde Corp., in its first year of operations, reports $502,000 of pretax financial income and $469,000 of taxable income.
In 2023, an enacted law changes the tax rate for all current and future years to 20%, and Hynde has $520,000 of pretax financial income and $567,500 of taxable income. All book-tax differences are due to one temporary difference for depreciation.
What deferred tax asset (enter as a positive number) or deferred tax liability (enter as a negative number) will Hynde report on its December 31, 2023 balance sheet ?
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