Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments.
In 2021, Isaac had $653 million in sales of this type. Scheduled collections for these sales are as follows:
2021 $70 million
2022 128 million
2023 126 million
2024 156 million
2025 173 million
$653 million
Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses and additional sales in 2022 what deferred tax liability would Isaac report in its year-end 2022 balance sheet?
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 14:30, Hannahdavy5434
Stella company sells only two products, product a and product b. product a product b total selling price $50 $30 variable cost per unit $20 $10 total fixed costs $2,110,000 stella sells two units of product a for each unit it sells of product b. stella faces a tax rate of 40%. stella desires a net afterminustax income of $54,000. the breakeven point in units would be
Answers: 3
Business, 22.06.2019 16:10, boogerbuttday
Omnidata uses the annualized income method to determine its quarterly federal income tax payments. it had $100,000, $50,000, and $90,000 of taxable income for the first, second, and third quarters, respectively ($240,000 in total through the first three quarters). what is omnidata's annual estimated taxable income for purposes of calculating the third quarter estimated payment?
Answers: 1
Do you know the correct answer?
Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the...
Questions in other subjects:
Mathematics, 29.02.2020 08:35
History, 29.02.2020 08:36
Mathematics, 29.02.2020 08:36
Physics, 29.02.2020 08:37
Mathematics, 29.02.2020 08:38
