Deferred tax liability reported on balance sheet

Assignment Help Financial Accounting

Reference no: EM131202980

During its first year of operation a company recorded revenue totalling $ 6,000,000 for book purposes. for tax purposes, $ 2,400,000 of the revenue is taxable during the first year of operation and $ 3,600,000 of the revenue is taxable during the second year of operation. The income tax rates for both years are 40%. What would be the deferred tax liability reported on the balance sheet at the end of the first year?

Reference no: EM131202980

Questions Cloud

Determine the mean temperature of the coil : Determine the mean temperature of the coil given that the temperature coefficient of resistance of copper is 4.28 x 10-3 °C referred to 0 °C.

Difference between master budget and flexible budget : The primary difference between a master budget and a flexible budget is that a:

Determining most cost-efficient transportation for commute : Describe the main actions that you intend to put into place to test the hypothesis that you proposed in Question 2. Describe the way in which you would evaluate the success of your program. Include the results that you would deem as a success and ..

Income tax expense should be reported on income statement : During 2015, its first year of operation, a company recorded depreciation expense of $ 50,000 for book purposes. For tax purposes during 2015, $ 100,000 of depreciation expense was deducted. The temporary difference created during 2015 will reverse e..

Deferred tax liability reported on balance sheet : During its first year of operation a company recorded revenue totalling $ 6,000,000 for book purposes. for tax purposes, $ 2,400,000 of the revenue is taxable during the first year of operation and $ 3,600,000 of the revenue is taxable during the sec..

Calculate the supply current : If a second similar lamp is connected in parallel to the lamp, - Calculate the supply current required to give the same power output in each lamp.

Income tax expense to be reported on income statement : During 2015, a company reported an increase in the defferred tax liability account of $ 77,990, an increase in the differed tax asset account of $ 35,325, and an income tax liabilty as per the 2015 income tax return of $ 398,555. What in the income t..

Data is related to sales and production of the widgets : Neon Company manufactures widgets. The following data is related to sales and production of the widgets for last year. Selling price per unit ?$130.00 Variable manufacturing costs per unit ?$62.00 Variable selling and administrative expenses per unit..

Understanding about abnormal psychology : What lingering questions remain to be answered, and how might they be answered? What other issues regarding this controversy need to be considered?

User Account

All Pages