Compute the income tax expense and income tax liability

Reference no: EM13216007

2 years ago, Charlotte Corp. purchased a building for $18,000,000. Charlotte uses straight-line depreciation to prepare the financial information but they use MACRS for tax purposes. At December 31, 2013, the building has a book value of $16,000,000 and its tax basis $13,000,000. At December 31, 2014, the book value of the building was $14,000,000 and the tax basis was $9,000,000. There were no other temporary differences or permanent differences. Pretax accounting income for the current year was $23,000,000. A tax rate is 40% ??
Prepare one journal entry to record Charlotte's income tax expense for the current year. Show the computation of income tax expense, income tax liability and deferred tax liability or deferred tax asset.

Reference no: EM13216007

Questions Cloud

Compute submarines eps for the year : Submarine, Corp., earned net income of $110,000 for 2011. Submarine's books include the following figures: Preferred stock, 2%, $30 par, 1,000 shares issued and outstanding $30,000 Common stock, $1 par, $52,000 issued $52,000 Paid-in capital in e..

What is the probability that the sample average : What is the probability that fewer than 59 CEOs agree that it is attractive to have a joint venture to increase global competitiveness and what is the probability that between 53 and 61 (inclusive) CEOs agree with that assertion?

Calculate the mean and standard deviation : Perform exploratory data analysis on CreativityPre and CreativityPost. Using SPSS, calculate the mean and standard deviation of these two variables.

Segmentation and consumer and business buying behavior : "Segmentation and Consumer and Business Buying Behavior" Please respond to the following Determine one segmentation variable by which you will collect research data for a product that you wish to market and sell online.

Compute the income tax expense and income tax liability : 2 years ago, Charlotte Corp. purchased a building for $18,000,000. Charlotte uses straight-line depreciation to prepare the financial information but they use MACRS for tax purposes. At December 31, 2013, the building has a book value of $16,000,0..

Develop a model that attempts to predict all commodities : Use these data and multiple regression to develop a model that attempts to predict all commodities by the other four variables.

What is the probability that a randomly selected grapefruit : What is the probability that a randomly selected grapefruit will have a diameter of at least 4.14 inches?

Is tax director correct in assessment of effective tax rate : Altidore Inc. operates a calendar-year-end business that suffers from dramatic seasonal variation in taxable income. For example, it often operates at a net loss for the first two quarters of the year and then operates profitably for the last two ..

Analysis on creativitypre and creativitypost : Perform exploratory data analysis on CreativityPre and CreativityPost. Using SPSS, calculate the mean and standard deviation of these two variables.

User Account

All Pages