Roth Inc. has a deferred tax liability of $68,000 at thebeginning of 2018. At the end of 2018, it reports accountsreceivable on the books at $90,000 and the tax basis atzero (its only temporary difference). If the enacted taxrate is 34% for all periods, and income taxes payable forthe period is $230,000, determine the amount of totalincome tax expense to report for 2018.
Roth Inc. has a deferred tax liability of $68,000 at thebeginning of 2018. At the end of 2018, it reports accountsreceivable on the books at $90,000 and the tax basis atzero (its only temporary difference). If the enacted taxrate is 34% for all periods, and income taxes payable forthe period is $230,000, determine the amount of totalincome tax expense to report for 2018.
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 20CE
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Roth Inc. has a
beginning of 2018. At the end of 2018, it reports accounts
receivable on the books at $90,000 and the tax basis at
zero (its only temporary difference). If the enacted tax
rate is 34% for all periods, and income taxes payable for
the period is $230,000, determine the amount of total
income tax expense to report for 2018.
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