Black, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end
of the year.Assume a 35% corporate tax rate and no valuation allowance. Assets Cash Accounts Receivable Buildings Accumulated Depreciation Furniture & Fixtures Accumulated Depreciation Total Assets Liabilities Accrued Litigation Expense Note Payable Total Liabilities Stockholders’ Equity Paid in Capital Retained Earnings Total Liabilities and Stockholders’ Equity Tax Debit/(Credit) $3005,000300,000(150,000)40,000(21,000)$174,300$−0−(116,000)($116.000)($1,000)(57,300)($174,300) Book Debit/(Credit) $3005,000300,000(80,000)40,000(15,000)$250,300($27,000)(116,000)$143,000)($1,000)(106,300)($250,300) ?
Black, Inc.'s, gross deferred tax assets and liabilities at the beginning of Black's year are listed below. Accrued Litigation Expense Subtotal Applicable Tax Rate Gross Deferred Tax Asset Building - Accumulated Depreciation Furniture & fixtures - Accumulated Depreciation Subtotal Applicable tax rate Gross deferred tax liability Beginning of Year $20,000$20,000×35%$7.000($61,000)(3,000)($64,000)×35%($22,400) ?
Black, Inc.'s, book income before tax is $6,000.Black records two permanent book-tax differences.
It earned $250 in tax-exempt municipal bond interest, and it incurred $500 in nondeductible meals
and entertainment expense.Determine the change in Black's deferred tax assets for the current year.
Definitions:
Small Intestine
A long, coiled section of the digestive system where most digestion and absorption of nutrients and minerals from food occurs.
Duodenum
The first section of the small intestine, immediately beyond the stomach, that plays a critical role in digestion.
Jejunum
The middle section of the small intestine between the duodenum and ileum where the absorption of nutrients occurs.
Ileum
The final and longest segment of the small intestine, where absorption of nutrients and minerals is completed.