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mash [69]
3 years ago
5

Never, Inc., earns book net income before tax of $500,000. In computing its book income, Never deducts $50,000 more in warranty

expense for book purposes than is allowed for tax purposes. Never records no other temporary or permanent book-tax differences. Assuming that the U.S. tax rate is 21% and no valuation allowance is required, what is Never's deferred income tax asset reported on its GAAP financial statements? a.$105,000 b.$94,500 c.$10,500 d.$115,500
Business
1 answer:
goldenfox [79]3 years ago
8 0

Answer:

c.$10,500

Explanation:

The computation of the deferred income tax asset is shown below:

= Warranty expense for book purposes  × U.S tax rate

= $50,000 ×21%

= $10,500

For computing the deferred income tax asset reported, we simply multiply the warranty expense with the U.S tax rate.

Hence, we ignored the net income before tax as it is an irrelevant part which is given in the question

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3 years ago
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weqwewe [10]

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2) Economic Growth: Use the PPF from above to illustrate the effects of saving and investment upon national GDP. Use a PPF to sh
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Answer and Explanation:

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spending  on consumer goods vs capital goods effect on the economy

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3:Leo's rent is due a few days before he expects to receive his paycheck from work. He takes out a
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Answer:

I think I think it will be 2:35 or 2:50

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