Analyzing Tax Expense
Crestview Holdings reported the following in its 2015 financial statements.

$ millions 2015 2014
Total deferred tax assets $843 $764
Total deferred tax liabilities 4,211 3,126
Current provision for income taxes 1,427 134

Compute the deferred tax expense for the company for 2015.

Deferred tax expense in 2015 is $1,006 million

Explanation:

It is imperative to calculate the actual deferred tax liabilities in each year before proceeding to compute the deferred tax expense for 2015.

Tax year 2014

Total deferred tax liabilities   $3,126

less;deferred tax asset          ($764)

Actual deferred tax liabilities  $2,362

Tax year 2015

Total deferred tax liabilities   $4,211

less;deferred tax asset          ($843)

Actual deferred tax liabilities $3368

The deferred tax expense for the year 2015 is the increase in actual deferred tax liabilities in 2015 that $1,006 million($3368-$2,362)

As result there would be a charge for deferred tax liabilities of $1,006 million in the year 2015

x=3

step-by-step explanation:

this is really simple i saw that there was only one term (5x) and thought if that was 15 what would i have to multiply everything else to get it there? well if 5x became 15 then x would have to be 3 so plug the 3 in the x for the other equations and you get 15 for the other ones. so there you go. : )