Required: Assuming a tax rate of 21%, what will be Yebo’s net income? What will Yebo report in the balance sheet pertaining to income taxes?
Required: Assuming a tax rate of 21%, what will be Yebo’s net income? What will Yebo report in the balance sheet pertaining to income taxes?
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 20CE
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Question
Yebo Corporation reports pretax accounting income of $900,000, but due to a single temporary difference, taxable income is only $400,000. At the beginning of the year, no temporary difference existed.
Required:
- Assuming a tax rate of 21%, what will be Yebo’s net income?
- What will Yebo report in the balance sheet pertaining to income taxes?
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