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Nalad Corp. provided the following data related to accounting and taxable income: ...

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Accounting

Nalad Corp. provided the following data related to accounting and taxable income:
20X820X9
Pre-tax accounting income (financial statements) $ 490,000 $ 485,000
Taxable income (tax return)285,000690,000
Income tax rate 38%38%
There are no existing temporary differences other than those reflected in these data. There are no permanent differences.
Required:
1-a. How much tax expense would be reported in each year if the taxes payable method was used?
1-b. What is the implied tax rate? (Round your answers to 1 decimal place.)
2-a. How much tax expense would be reported using comprehensive tax allocation (liability method).
2-b. How much deferred income tax would be reported using comprehensive tax allocation (liability method).
2-c. Why is the two year total tax expense is the same under both tax payable method and liability method? (Select all that apply.)

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