Alamo Inc. had $380 million in taxable income for the current year. Alamo also had a...
Alamo Inc. had $380 million in taxable income for the current year. Alamo also had a decrease in deferred tax assets of $29 million and an increase in deferred tax liabilities of $66 million. The company is subject to a tax rate of 25%. The total income tax expense for the year was:
Multiple Choice
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$190 million.
-
$218 million.
-
$475 million.
-
$247 million.
Homework Answers
Answer: $190 million
Explanation
Current taxes = $380 million x 25% = $95 million
The total income tax expense for the year was = Current taxes + Decrease in deferred tax assets + Increase in deferred tax liabilities
= $ $95 million + $29 million + $66 million
= $190 million
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Alamo Inc. had $380 million in taxable income for the current
year. Alamo also had a...
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