Eddy Corp.'s 2008 income statement showed pretax accounting income of $750,000. To compute the federal income tax liability, the following 2008 data are provided: What amount of current federal income tax liability should be included in Eddy's December 31, 2008 balance sheet?

Question

Eddy Corp.'s 2008 income statement showed pretax accounting income of $750,000. To compute the federal income tax liability, the following 2008 data are provided:  What amount of current federal income tax liability should be included in Eddy's December 31, 2008 balance sheet?

Quizplus · Accepted Answer

($750,000 - $30,000 - $60,000) × 30% = $198,000;
$198,000 - $150,000 = $48,000.

Eddy Corp'S 2008 Income Statement Showed Pretax Accounting Income of $750,000