Exercise 19-3 (Part Level Submission) Sage Corporation began 2017 with a $98,600
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Question
Exercise 19-3 (Part Level Submission)
Sage Corporation began 2017 with a $98,600 balance in the Deferred Tax Liability account. At the end of 2017, the related cumulative temporary difference amounts to $335,700, and it will reverse evenly over the next 2 years. Pretax accounting income for 2017 is $504,700, the tax rate for all years is 40%, and taxable income for 2017 is $415,500.
(a)
Exercise 19-3 (Part Level Submission)
Sage Corporation began 2017 with a $98,600 balance in the Deferred Tax Liability account. At the end of 2017, the related cumulative temporary difference amounts to $335,700, and it will reverse evenly over the next 2 years. Pretax accounting income for 2017 is $504,700, the tax rate for all years is 40%, and taxable income for 2017 is $415,500.
Explanation / Answer
a.
Taxable income $415500
Tax rate 40%
Income Tax payable $166200.
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