Alvis Corporation reports pretax accounting income of $360,000, but due to a single temporary difference, taxable income is only $220,000. At the beginning of the year, no temporary differences existed. Required: 1. Assuming a tax rate of 30%, what will be Alvis’s net income? 2. What will Alvis report in the balance sheet pertaining to income taxes?

Assuming a tax rate of 30%, what will be Alvis’s net income?

100-0.30=0.70

360,000 x 0.70 = $252,000.

What will Alvis report in the balance sheet pertaining to income taxes?

Income tax = 360,000 x 0.30 = $ 108,000

Taxable income is only $220,000

Deferred tax liability ([$360,000 – 220,000] × 30%) = 42,000

Account Title                                                     Dr       Cr

Income tax expense                               108,000    

Deferred tax liability                                                         42,000

Income tax payable ($220,000 × 30%)              66,000

answer; blank (1) hrm specialists,blank(2); line managers;

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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