Question

Alvis Corporation reports pretax accounting income of $200,000, but due to a single temporary difference, taxable income is only $100,000. At the beginning of the year, no temporary differences existed. Required: 1. Assuming a tax rate of 30%, what will be Alvis's net income? 2. What will Alvis report in the balance sheet pertaining to income taxes? Complete this question by entering your answers in the tabs below. Required Required Assuming a tax rate of 30%, what will be Alvis's net income? Net income - Required 1 Required 2 >

Answer 1

1.

Net income (200,000-30%)

140,000

2.

Deferred tax liability (200,000-100,000)*30%	30,000
Income tax payable (100,000*30%)	30,000