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USA TAX RATE

28) York Company reported the following results for the year ended December 31, 2021, its first year of operations:

2021

Income (per books before income taxes) $ 1,800,000

Taxable income 3,400,000

The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2022. What should York record as a net deferred tax asset or liability for the year ended December 31, 2021, assuming that the enacted tax rates in effect are 30% in 2021 and 20% in 2022?

29) Blue Sky Corporation prepared the following:

Pretax financial income for 2021 $ 1,500,000

Tax exempt interest (140,000)

Originating temporary difference (250,000)

The temporary difference will reverse evenly over the next two years at an enacted tax rate of 30%. The enacted tax rate for 2021 is 25%.

Compute Blue Skys income tax payable for the year 2021.

30) Apple, Inc. had pre-tax accounting income of $2,500,000 and a tax rate of 20% in 2021, its first year of operations. During 2021 the company had the following transactions:

Received rent from York, Co. for 2022 $ 85,000

Municipal bond income $150,000

Depreciation for tax purposes in excess of book depreciation $60,000

Compute the deferred tax asset balance at December 31, 2021.

31) Washington Corporation reported $200,000 in revenues in its 2021 financial statements, of which $44,000 will not be included in the tax return until 2022. The enacted tax rate is 30% for 2021 and 25% for 2022. What amount should Washington report for deferred income tax liability in its balance sheet at December 31, 2021?

32) ABC Corp.'s 2021 income statement showed pretax accounting income of $2,800,000. To compute the federal income tax liability, the following 2021 data are provided:

Income from exempt municipal bonds $ 100,000

Depreciation deducted for tax purposes in excess of depreciation

deducted for financial statement purposes 300,000

Enacted corporate income tax rate 20%

Compute the current tax payable for the year.

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