Solution-What is the amount of the deferred tax liability

What is the amount of the deferred tax liability at the end

Assignment Help Financial Accounting

Reference no: EM132913066

Olivia Company deducts insurance expense of 84,000 for tax purposes in 2020, but the expense is not yet recognized for accounting purposes. In 2021, 2022, and 2023, no insurance expense will be deducted for tax purposes, but 28,000 of insurance expense will be reported for accounting purposes in each of these years. Olivia Company has a tax rate of 40% and income taxes payable of 72,000 at the end of 2020. There were no deferred taxes at the beginning of 2020.

Problem 1. What is the amount of the deferred tax liability at the end of 2020?

a. 33,600 b. 28,800 c. 12,000 d. 0

Problem 2. What is the amount of income tax expense for 2020?

a. 105,600 b. 100,800 c. 84,000 d. 72,000

Problem 3. Assuming that income tax payable for 2021 is 96,000, the income tax expense for 2021 would be what amount?

a. 129,600 b. 107,200 c. 96,000 d. 84,800

Reference no: EM132913066

Questions Cloud

What is the probability of selecting a shift foreman : The weekly incomes of shift foremen in the glass industry follow the normal probability distribution with a mean of $1,000 and a standard deviation of $100.

Communicating the benefits of technology : Communicating with families on the purpose and learning benefits of using technology in an early childhood setting is necessary even in this high-tech era

Compute the adjusted balances in partners capital accounts : An unpaid mortgage of 20,000 on the land is assumed by the partnership. Compute the adjusted balances in partners capital accounts

What amount was actually paid the year for warranty claims : The amount charged to warranty expense on its books was 95,000. Assuming a 40% income tax rate, what amount was actually paid this year for warranty claims?

What is the amount of the deferred tax liability at the end : Olivia Company deducts insurance expense of 84,000, Assuming that income tax payable for 2021 is 96,000, the income tax expense for 2021 would be what amount?

Implementing strategic recommendations : Identify implementation issues that an organisation will need to consider when implementing strategic recommendations based on internationalisation.

Prepare the journal entries to record of theresa ltd : You are required to prepare the journal entries to record this transaction in accordance with IFRS 15 for the year ended 30 June 2019

Define the differences between motivation and persuasion : Define the differences between motivation and persuasion and describe a time where you tried to do both. Remember to cite your sources for your definitions.

Describe an integer linear programming problem : Describe an integer linear programming problem related to healthcare and write its LP relaxation.

User Account

All Pages

What is the amount of the deferred tax liability at the end

Reference no: EM132913066

Reference no: EM132913066

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT