1. Whispering Corporation began 2017 with a $42,000 balance in the Deferred Tax Liability account. At the end of 2017, the related cumulativetemporary difference amounts to $188,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2017 is $392,000, the tax rate for all years is 40%, and taxable income for 2017 is $311,000.
2.
The following facts relate to Sarasota Corporation.
| 1. | Deferred tax liability, January 1, 2017, $84,000. | |
| 2. | Deferred tax asset, January 1, 2017, $0. | |
| 3. | Taxable income for 2017, $179,000. | |
| 4. | Pretax financial income for 2017, $395,000. | |
| 5. | Cumulative temporary difference at December 31, 2017, giving rise to future taxable amounts, $463,000. | |
| 6. | Cumulative temporary difference at December 31, 2017, giving rise to future deductible amounts, $73,000. | |
| 7. | Tax rate for all years, 40%. | |
| 8. | The company is expected to operate profitably in the future. |
show the solution in a word document
0 comments