Blue Spruce Corporation has a taxable temporary difference related to net book value versus UCC of $719,000 at December 31, 2023. This difference will reverse as follows: 2024, $50,300; 2025, $314,000; and 2026, $354,700. Enacted tax rates are 25% for 2024 and 2025, and 30% for 2026. Calculate the amount that Blue Spruce should report as a deferred tax asset or liability at December 31, 2023. Deferred tax ✓to be reported $ If the tax rate for 2026 had been 25%, and unexpectedly increased to 30% at the end of 2023, how would the increase in the tax rate for 2026 have affected the deferred tax asset or liability, and the related expense, in 2023? The deferred tax expense and liability would in 2023 by $
Blue Spruce Corporation has a taxable temporary difference related to net book value versus UCC of $719,000 at December 31, 2023. This difference will reverse as follows: 2024, $50,300; 2025, $314,000; and 2026, $354,700. Enacted tax rates are 25% for 2024 and 2025, and 30% for 2026. Calculate the amount that Blue Spruce should report as a deferred tax asset or liability at December 31, 2023. Deferred tax ✓to be reported $ If the tax rate for 2026 had been 25%, and unexpectedly increased to 30% at the end of 2023, how would the increase in the tax rate for 2026 have affected the deferred tax asset or liability, and the related expense, in 2023? The deferred tax expense and liability would in 2023 by $
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 8E: Incomc Taxes Then Company has been in operation for several years. It has both a deductible and a...
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