Ask Question
2 March, 03:03

Wayne Co. had a decrease in deferred tax liability of $29 million, a decrease in deferred tax assets of $19 million, and an increase in tax payable of $109 million. The company is subject to a tax rate of 25%. The total income tax expense for the year was:

+2
Answers (1)
  1. 2 March, 06:30
    0
    The multiple choices are:

    A. $99 million.

    B. $100 million.

    C. $110 million.

    D. $130 million.

    The current option is A, $99 million

    Explanation:

    The total income tax expense for the comprises of the increase in tax payable amount of $109 million plus the decrease in deferred tax assets minus the decrease in deferred tax liability

    Increase in tax payable $109,000,000

    decrease in deferred tax liability ($29,000,000)

    decrease in deferred tax assets $19,000,000

    total income tax expense $99,000,000

    The amount tax expense to deducted in the income statement for the year is $99 million.

    The decrease in deferred tax liability is like an income, hence deducted, while the decrease in deferred tax assets is added as an additional tax expense.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Wayne Co. had a decrease in deferred tax liability of $29 million, a decrease in deferred tax assets of $19 million, and an increase in tax ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers