What is amout of income tax expense

Assignment Help Accounting Basics

Reference no: EM131908538

Problem

Lyons Company deducts insurance expense of $126,000 for tax purposes in 2014, but the expense is not yet recognized for accounting purposes. In 2015, 2016, and 2017, no insurance expense will be deducted for tax purposes, but $42,000 of insurance expense will be reported for accounting purposes in each of these years. Lyons Company has a tax rate of 40% and income taxes payable of $108,000 at the end of 2014. There were no deferred taxes at the beginning of 2014.

What is amout of income tax expense for 2014? Answer $158,400. Need help to calculate.

Reference no: EM131908538

Questions Cloud

Determining the conflict styles : John and Mary, husband and wife, received a $2000 tax refund this month. John wants to save the money.

Analyze the given case using economics : A 21-year-old songwriter signed a contract in 1966 with a music publisher. The standard-form contract assigned the copyrights of all the plaintiff's output.

Current or former relationship : Review the theories of relationships (including romantic love and friendship) and *briefly* describe how one of those theories applies to a current or former

How do both cognitive and physical factors : How do both cognitive and physical factors contribute to accidents when drivers talk on their cell phones and/or text behind the wheel?

What is amout of income tax expense : Lyons Company deducts insurance expense of $126,000 for tax purposes. What is amout of income tax expense for 2014? Answer $158,400. Need help to calculate.

What is the perfect-information judgment : Assume that the following legal rule applies to Example 1 (the "grasshopper killer"): "Breach of contract arising from false or misleading advertising results.

What would be the effect of marijuana legalization : What would be the effect of marijuana legalization? Would it increase or decrease consumption?

Portfolio assignment - business model innovation project : Portfolio Assignment - Business Model Innovation Project - identifying an attractive market space for business model innovation. Each team will then perform

Describe the influence that environmental variables : Describe the influence that environmental variables, motivation, past experiences, culture, and expectations has had on perception.

User Account

All Pages