Information for Kent Corp. for the year 2021: Reconciliation of pretax accounting income and taxable income: Pretax accounting income $ 174,000 Permanent differences (15,200 ) 158,800 Temporary difference-depreciation (12,900 ) Taxable income $ 145,900 Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2020 $ 12,700 As of December 31, 2021 $ 25,600 The enacted tax rate was 30% for 2020 and thereafter. What would Kent's income tax expense be in the year 2021?
Information for Kent Corp. for the year 2021: Reconciliation of pretax accounting income and taxable income: Pretax accounting income $ 174,000 Permanent differences (15,200 ) 158,800 Temporary difference-depreciation (12,900 ) Taxable income $ 145,900 Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2020 $ 12,700 As of December 31, 2021 $ 25,600 The enacted tax rate was 30% for 2020 and thereafter. What would Kent's income tax expense be in the year 2021?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 4E: Single Temporary Difference: Multiple Rates At the end of 2019, Fulhage Company reported taxable...
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Information for Kent Corp. for the year 2021:
Reconciliation of pretax accounting income and taxable income:
| Pretax accounting income | $ | 174,000 | ||
| Permanent differences | (15,200 | ) | ||
| 158,800 | ||||
| Temporary difference- |
(12,900 | ) | ||
| Taxable income | $ | 145,900 | ||
Cumulative future taxable amounts all from depreciation temporary differences:
| As of December 31, 2020 | $ | 12,700 | |
| As of December 31, 2021 | $ | 25,600 | |
The enacted tax rate was 30% for 2020 and thereafter.
What would Kent's income tax expense be in the year 2021?
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