[Topsya]

Could anyone solve this?

For the year ended December 31, 2011, Tyre Company reported pre-tax financial statement income of $750,000. Its taxable income was $650,000. The difference is due to accelerated depreciation for income tax purposes. Tyre’s income tax rate is 30%, and it made estimated tax payments of $90,000 during 2011.

What amount should Tyre report as the current portion of income tax expense for 2011?

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[kevlee]

650,000 * 30% = 195,000.

Current expense portion is always the taxable income times the current tax rate.

If you want to find the current liability on the other hand you take the 195k and subtract 90k and you are left with 105k.

Hope this helps.

[Topsya]

oh yeah….. Thanks @kevlee

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Anonymous]

I have different thoughts.

Tax is only deducted in the year it is paid and imposed. In 2011, no doubt the tax was imposed, and TP paid 90000. So the expense deductible on return should be 90000. Do u have the answer?

Assuming A corporation in 2000 paid no tax but according to its TI, it had a tax liability of $50000. On its 2000 return, what was the tax expenses?

[ssiegri]

I believe it'd be like this.. in the becker they net the income tax payable for simplicity purposes since they don't have estimated payments in the examples to mess your thinking up I guess.. not sure about the MC though

inc tax exp – current 195k

inc tax exp – def 30k

DTL -30k

accrued Inc tax payable (est payments) – 90k

inc taxes payable – current -105k

[Author]

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