Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a company had total deferred tax assets related to

A company had total Deferred Tax Assets related to NOLs of $35,000. It also had...

60.1K

Verified Solution

Question

Accounting

A company had total Deferred Tax Assets related to NOLs of $35,000. It also had a Valuation Allowance of $10,000 due to the NOLs in the Faroe Islands. Now, the company thinks that it is more likely than not that it will be able to use the NOLs in the Faroe Islands. The statutory tax rate is 42.0% in the Faroe Islands.

How will the change to the more likely than not determination for the Faroe Islands affect Income Tax Expense?

Increase Income Tax Expense by $10,000

Decrease Income Tax Expense by $10,000

There is no effect on Income Tax Expense

Increase Income Tax Expense by $4,200

Decrease Income Tax Expense by $4,200

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

State of Nature………..Probability…………….State Dependent Return A………….State Dependent Return B Recession……………………..70%................................-0.08 ………………………………………………-0.04 Expansion.....................30%.................................0.28……………………………………………….0.16 What comes closest to the covariance between Stock...

Finance
Q

Why, after years of looking inward, did the United States suddenly begin a “quest for empire”...

Psychology
Q

QUESTIONS 1. Prepare a comprehensive advertisement for the procurement of good using e-procurement approach. 2. Give a detailed...

General Management
Q

with an hour of time to respond and you are free to take two attempts...

Physics
Q

Determine the difference in clock 12 arithmetic by starting at the first number and counting...

Basic Math
Q

PB10-5(Algo) Recording and Explaining the Early Retirement of Debt [LO 10-3] ...

Accounting
Q

QUESTION 9 10 points Save Answer Saphire Unlimited Company reported net income of...

Accounting
Q

the time intrest earning is computed by dividing? Multiple Choice Question...

Accounting
Q

The marketing manager of Thornton Corporation has determined that a market exists for a telephone...

Accounting
Q

Go to your local newspaper or view a news item that is accounting or business...

Accounting
Q

For each of the following items, indicate whether the costs should be capitalized or expensed...

Accounting
Q

On July 20, 2022, Mary purchased a passenger automobile that is used 75% for business....

Accounting