Walsh Services computed pretax financial income of $220,000 for its first year of operations ended December 31, 2011. In preparing the income tax return for the year, the tax accountant determined the following differences between 2011 financial income and taxable income:

The temporary difference is expected to reverse in the following pattern:

The enacted tax rates for this year and the next three years are as follows:

Use the provisions of FASB Statement No. 109.

Question

Walsh Services computed pretax financial income of $220,000 for its first year of operations ended December 31, 2011. In preparing the income tax return for the year, the tax accountant determined the following differences between 2011 financial income and taxable income:
  
The temporary difference is expected to reverse in the following pattern:
  
The enacted tax rates for this year and the next three years are as follows:
  
Use the provisions of FASB Statement No. 109.

Quizplus · Accepted Answer

The Answer of Walsh Services computed pretax financial income of $220,000 for its first year of operations ended December 31, 2011. In preparing the income tax return for the year, the tax accountant determined the following differences between 2011 financial income and taxable income:
  
The temporary difference is expected to reverse in the following pattern:
  
The enacted tax rates for this year and the next three years are as follows:
  
Use the provisions of FASB Statement No. 109.

Walsh Services Computed Pretax Financial Income of $220,000 for Its