subject
Business, 04.03.2021 20:10 jodonw1955

Kenneth McDowell Co. establishes a $134,000,000 liability at the end of 2020 for the estimated site-cleanup costs at two of its manufacturing facilities. All related closing costs will be paid and deducted on the tax return in 2021. Also, at the end of 2020, the company has $67,000,000 of temporary differences due to excess depreciation for tax purposes, $9,380,000 of which will reverse in 2021. The enacted tax rate for all years is 20%, and the company pays taxes of $42,880,000 on $214,400,000 of taxable income in 2020. McDowell expects to have taxable income in 2021. a.) Determine the deferred taxes to be reported at the end of 2020.
b.) Indicate how the deferred taxes computed in (a) are to be reported on the balance sheet.
c.) Assuming that the only deferred tax account at the beginning of 2020 was a deferred tax liability of $10,000,000, draft the income tax expense portion of the income statement for 2020, beginning with the line "Inconme before income taxes." (Hint: you must first compute (1) the amount of temporary difference underlying the beginning $10,000,000 deferred tax liability, then (2) the amount of temporary differences originating or reversing during the year, and then (3) the amount of pretax financial income.)

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 05:30
Suppose jamal purchases a pair of running shoes online for $60. if his state has a sales tax on clothing of 6 percent, how much is he required to pay in state sales tax?
Answers: 3
question
Business, 22.06.2019 20:40
Spartan credit bank is offering 7.5 percent compounded daily on its savings accounts. you deposit $5,900 today. a. how much will you have in the account in 4 years? (use 365 days a year. do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. how much will you have in the account in 12 years? (use 365 days a year. do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. how much will you have in the account in 19 years?
Answers: 2
question
Business, 22.06.2019 21:00
Kendra knight took part in a friendly game of touch football. she had played before and was familiar with football. michael jewett was on her team. in the course of play, michael bumped into kendra and knocked her to the ground. he stepped on her hand, causing injury to a little finger that later required its amputation. she sued michael for damages. he defended on the ground that she had assumed the risk. kendra claimed that assumption of risk could not be raised as a defense because the state legislature had adopted the standard of comparative negligence. what happens if contributory negligence applies? what happens if the defense of comparative negligence applies?
Answers: 2
question
Business, 22.06.2019 21:30
Russell's study compared gpa of those students who volunteered for academic study skills training and those who did not elect to take the training. he found that those who had the training also had higher gpa. with which validity threat should russell be most concerned?
Answers: 2
You know the right answer?
Kenneth McDowell Co. establishes a $134,000,000 liability at the end of 2020 for the estimated site-...
Questions
Questions on the website: 13722365