At the End of the Preceding Year, World Industries Had

question 95

Essay

At the end of the preceding year, World Industries had a deferred tax asset of $17,500,000, attributable to its only temporary difference of $50,000,000 for estimated expenses. At the end of the current year, the temporary difference is $45,000,000. At the beginning of the year there was no valuation account for the deferred tax asset. At year-end, World Industries now estimates that it is more likely than not that one-third of the deferred tax asset will never be realized. Taxable income is $12,000,000 for the current year and the tax rate is 30% for all years.
Required:
Prepare journal entries to record World Industries' income tax expense for the current year. Show well-labeled supporting computations for each component of the journal entries.

Distinguish the various types of online content and platforms that companies can use for marketing.

Apply the concept of crowdsourcing in marketing for innovation and community building.

Appreciate the ethical considerations in online marketing, especially in terms of content creation and management.

Recognize the importance of accurate and timely content in maintaining a company's online presence.

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Definitions:

Personal Achievement

Refers to the accomplishment of personal goals and objectives, often leading to a sense of satisfaction and fulfillment.

Competition

The rivalry between businesses or individuals for resources, market share, or superiority in a particular field.

Power Avoidance

A cultural value indicating a society's tolerance for unequal distribution of power, and its members' behavioral response to minimize or avoid such inequalities.

Ambiguity

Ambiguity is the quality of being open to more than one interpretation, lacking clarity, and leading to uncertainty or confusion.