Question
uestion completion status: QUESTION 22 A reconciliation of pretax financial statement income to ta rate is 40%. 2 points Save Answer income is shon below for Chan Inc. for the year ended December 31, 2018, its first year of operations. The income tax Pretax accounting income (income statement) Inventory impairments in excess of deductible amount Depreciation in excess of financial statement amount Taxable income (tax return) 500,000 40,000 (120,000) $ 420,000 The inventory impairments relate to Chan's Columbian tax return. The depreciation relates to Chan's U.S. tax return. What amount(s) should Chan report related to deferred income taxes in its 2018 balance sheet? O Current deferred tax asset of $16,000 and noncurrent deferred tax liability of $48,000. O Noncurrent deferred tax liability of $32,000 O Noncurrent deferred tax asset of $ 16,000 and noncurrent deferred tax liability of S48.000 O Noncurrent deferred tax asset of $32,000. a. Ask me anything.
Explanation / Answer
(40000 ) * 40% = 16000
( 120000 * 40) = 48000
so answer is
current deferred tax asset 16000 and non current deferred tax liability 48000
