Exercise 19-22 (Part Level Submission) Teal Corporation has pretax financial inc

Question

Exercise 19-22 (Part Level Submission) Teal Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2009 through 2017 as follows Income (Loss) $35,380 48,800 20,740 58,560 (183,000) 109,800 36,600 128,100 (73,200 ) Tax Rate 30% 30 % 35 % 50% 40% 40% 40% 40% 45% 2009 2010 2011 2012 2013 2014 2015 2016 2017 Pretax financial income (loss) and taxable income (loss) were the same for all years since Teal has been in business. Assume the carryback provision is employed for net operating losses. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized

Explanation / Answer

Income Statement for year 2014

Total income tax expense for 2014 = 109800 *40% = $43920

Income tax payable (current) = [(109800 - (183000 - 20740 - 58560)] *40%

= $ 2440

Deferred = 43920 - 2440 = $ 41480

Income before Income taxes 109800 Income tax expense: Current 2440 Deferred 41480 43920 Net Income / (Loss) $ 65880

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.