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qaws [65]
3 years ago
9

Dwyer Company reported the following results for the year ended December 31, 2007, its first year of operations: 2007 Income (pe

r books before income taxes) $ 1,500,000 Taxable income 2,400,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2008. What should Dwyer record as a net deferred tax asset or liability for the year ended December 31, 2007, assuming that the enacted tax rates in effect are 40% in 2007 and 35% in 2008?
Business
1 answer:
Art [367]3 years ago
8 0

Answer: $315,000 deferred tax asset

Explanation:

The amount that Dwyer should record as a net deferred tax asset or liability for the year ended December 31, 2007 will be calculated thus:

= ($2400000 – $1500000) × 35%

= $900000 × 35%

= $900000 × 35/100

= $900000 × 0.35

= $315000.

Therefore, the answer is $315,000 deferred tax asset

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Green Tax

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What are some of the drawbacks from 2007 to 2009 you have encountered in your research for this discussion, why companies showed
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Officially, the Great Recession lasted between December 2007 and June 2009, but it certainly seemed longer.

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Hank is a U.S. citizen and is doing a three to six-year assignment as a sales executive in Paris for a French company, which beg
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