16 Test 10.00 points MC Qu.30 LO 16-01 Isaac Inc. began operations in January 20

Question

16 Test 10.00 points MC Qu.30 LO 16-01 Isaac Inc. began operations in January 2016. For certain of it... However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments In 2016, Isaac had $695 million in sales ot this type Scheduled collections for these sales are as follows 85 million 139 milllon 136 million 5 million 2019 2020 95 million Assume that Isaac has a 26% income tax rate and that there were no other differences in income for financial statement and tax purposes ignoring operating expenses, what deterted tax llablity wouid Isaa? report in its year-end 2016 balance sheet? Round your answer to the nearest whole ml O $22 milsion O seso milion O $159 miltion O $181 milion Multiple Choice atiois it Jan 2018 For otai of TOSHIBA esc 2 3 4 5

Explanation / Answer

Calculate deffered tax liability for 2016 :

Financial income = 695 million

Income tax income = 85 million

so deffered tax liability = (695-85)*26% = 159 million

so answer is c) 159 million

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