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    Kent Inc. reconciled its 2017 financial statement pre-tax income of $150,000 with its taxable income of $129,000. The differences were a permanent difference of -$12,000 and a temporary difference of -$9,000 from depreciation. At the end of 2016 and 2017, Kent had cumulative temporary differences of $11,000 and $20,000 respectively, to be taxed in future years at a rate of 35%.

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    Kent Inc. reconciled its 2017 financial statement pre-tax income of $150,000 with its taxable income of $129,000. The differences were a permanent difference of -$12,000 and a temporary difference of -$9,000 from depreciation. At the end of 2016 and 2017, Kent had cumulative temporary differences of $11,000 and $20,000 respectively, to be taxed in future years at a rate of 35%.

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    12 views1 page

    Solutiondone 144

    Uploaded by

    trilocksp Singh
    Kent Inc. reconciled its 2017 financial statement pre-tax income of $150,000 with its taxable income of $129,000. The differences were a permanent difference of -$12,000 and a temporary difference of -$9,000 from depreciation. At the end of 2016 and 2017, Kent had cumulative temporary differences of $11,000 and $20,000 respectively, to be taxed in future years at a rate of 35%.

    Copyright:

    © All Rights Reserved
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    Kent Inc s reconciliation between financial statement and

    taxable income for


    Kent Inc s reconciliation between financial statement and taxable income for

    Kent Inc.'s reconciliation between financial statement and taxable income for 2017 follows:
    Pre-tax financial income........................................................... $150,000
    Permanent difference........................................................... ... (12,000)
    ......................................................................................... 138,000
    Temporary difference-depreciation.............................................. (9,000)
    Taxable income.................................................................... $129,000
    Additional Information:
    At December 31,
    _______________________________________2016________________2017
    Cumulative temporary difference...............$11,000....................$20,000
    (future taxable amounts)
    The enacted tax rate is 35%.
    Required:
    1. In its December 31, 2017, balance sheet, what amount should Kent report as its deferred tax
    liability?
    2. In its 2017 income statement, what amount should Kent report as the current portion of
    income tax expense?

    Kent Inc s reconciliation between financial statement and taxable income for
    SOLUTION-- http://solutiondone.online/downloads/kent-inc-s-reconciliation-between-financial-
    statement-and-taxable-income-for/

    Unlock answers here solutiondone.online

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