Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. your firm has $90,000 in income before taxes and t

Your firm has $90,000 in income before taxes and taxable income of $80,000 for 2023....

60.1K

Verified Solution

Question

Accounting

Your firm has $90,000 in income before taxes and taxable income of $80,000 for 2023. The difference between the two incomes is attributable to two items:
Accelerated depreciation on PP&E was $26,000 for tax purposes but was $42,000 for GAAP reporting purposes in 2023.
Your firm also recorded warranty expense under GAAP and as a tax deductible expense at different amounts in 2023.
There are no other differences between the two incomes. The firm's tax rate is 25%.
a) By how much was the GAAP warranty expense larger than the tax warranty expense in 2023?
b) By how much did the firm's deferred tax assets and liabilities change in 2023? Make sure to label the amounts as changes in deferred tax assets and liabilities, respectively.
image

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