on january 1, 2019, newell industries had a deferred tax liability associated with $450,000 of excess depreciation. in december of 2019, a new income tax act was signed into law that lowered the corporate rate from 20% to 15%, effective january 1, 2021. if taxable amounts related to the temporary difference are scheduled to be reversed by $225,000 for both 2020 and 2021, how much should newell increase or decrease the deferred tax liability amount? increase by $11,250. decrease by $22,500. increase by $22,500. decrease by $11,250.

Question

04-11-2022
Business

Answered

on january 1, 2019, newell industries had a deferred tax liability associated with $450,000 of excess depreciation. in december of 2019, a new income tax act was signed into law that lowered the corporate rate from 20% to 15%, effective january 1, 2021. if taxable amounts related to the temporary difference are scheduled to be reversed by $225,000 for both 2020 and 2021, how much should newell increase or decrease the deferred tax liability amount? increase by $11,250. decrease by $22,500. increase by $22,500. decrease by $11,250.

Answer :

Other Questions

joshua makes $50,000 a year and pays 24% in income tax. zoe makes $90,000 a year and pays 28% in income tax. what type of tax structure explains this difference

Governments throughout history have levied some very interesting taxes. Each of the following taxes changed citizens' behavior. Determine whether it's likely th

Gift tax falls under which tax category?a. payroll taxb. property taxc. purchase taxd. wealth tax

joshua makes $50,000 a year and pays 24% in income tax. zoe makes $90,000 a year and pays 28% in income tax. what type of tax structure explains this difference

A retailer marks up the price of a coffee mug from $6.25 to $8.77. by what percent did the price increase? round to two decimal places.a.28.73%b.39.68%c.40.32%d

when a tax is levied on a good, the buyers and sellers of the good share the burden,

The value of almost everything you own (assets), such as a car, computer, or house, depreciates (goes down) over time. when an asset’s value decreases by a fixe

All of the following are needed for the calculation of straight-line depreciation except:a. costb. residual valuec. estimated lifed. units produced

this data has been taken from the economic report of the president on interest rate and monetary growth to estimate a model where moody?s aaa corporate bond rat

Trendy wear for teens is choosing to set up its new production facility in indonesia in order to take advantage of low labor costs. additionally, the indonesian

SakshTiwari353 SakshTiwari353 · Answer 1 · 2022-11-08T13:17:05-05:00

Decrease by $22,500. increase by $22,500. decrease by $11,250 Decrease by $11,250.

In which of the following differences would there be taxable amounts in the future?

It is present when the income reported by the taxing authorities is less than the reported income in the financial statements. The tax on the difference in the two sources of income is due in the future.

Which of the following statements best describes how pretax financial income is calculated?

Pretax earnings are computed by deducting operational costs from either revenue or gross margin for the company. Depreciation, insurance, interest, and fines from the government are just a few examples of operating expenses.

Which of the following approaches to tax accounting is deemed by the FASB to be the most reliable approach?

The FASB considers the asset-liability technique to be the most reliable way to account for income taxes. Companies must categorize all deferred taxes as noncurrent under GAAP.

To Know more about Decrease

https://brainly.com/question/2426876

#SPJ4