F5 - Income Taxes Flashcards
1
Q
Pre-tax financial income
200,000
Excess depreciation per tax return
(40,000)
Municipal bond interest
(10,000)
Taxable income
=150,000
If the enacted tax rate for current and future periods were 25%, Rubarb would record a deferred tax liability of:
A
Temporary difference is the 40K of deprecetiaion so multiply by the % to find the $10K that is deferred liability