Mitchell Corporation prepared the following reconciliation for 2021, its first year of operations: Pretax financial income for 2021 :900,000 Tax exempt interest: (75,000) Originating Temporary difference:(225,000) Taxable income:600,000 The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 2021 is 35% What amount should be reported in its 2011 income statement as the deferred portion of the income tax expense Select one: O A. $90,000 credit O B. $120,000 debit •O C. $105,000 credit O D. $90,000 debit

Mitchell Corporation prepared the following reconciliation for 2021, its first year of operations: Pretax financial income for 2021 :900,000 Tax exempt interest: (75,000) Originating Temporary difference:(225,000) Taxable income:600,000 The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 2021 is 35% What amount should be reported in its 2011 income statement as the deferred portion of the income tax expense Select one: O A. $90,000 credit O B. $120,000 debit •O C. $105,000 credit O D. $90,000 debit

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 4BCRQ

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