Krasco Inc.'s auditors prepared the following reconciliation between book and taxable income.
The corporation has a 21% tax rate.
Book income before tax $\quad$$\quad$$\quad$$ 8,288,900
Net permanent differences $\quad$$\quad$(35,770 )
Net temporary differences $\quad$$\quad$112,400
Taxable income $\quad$$\quad$$\quad$$\quad$$\quad$ $ 8,365,530
a. Compute Krasco's tax expense per books and tax payable.
b. Compute Krasco's net increase in deferred tax assets or deferred tax liabilities (identify which) for the year.

Question

Krasco Inc.'s auditors prepared the following reconciliation between book and taxable income. 
The corporation has a 21% tax rate.
Book income before tax $\quad$$\quad$$\quad$$ 8,288,900 
Net permanent differences $\quad$$\quad$(35,770 ) 
Net temporary differences $\quad$$\quad$112,400 
Taxable income $\quad$$\quad$$\quad$$\quad$$\quad$ $ 8,365,530 
a. Compute Krasco's tax expense per books and tax payable.
b. Compute Krasco's net increase in deferred tax assets or deferred tax liabilities (identify which) for the year.

Quizplus · Accepted Answer

The Answer of Krasco Inc.'s auditors prepared the following reconciliation between book and taxable income. 
The corporation has a 21% tax rate.
Book income before tax $\quad$$\quad$$\quad$$ 8,288,900 
Net permanent differences $\quad$$\quad$(35,770 ) 
Net temporary differences $\quad$$\quad$112,400 
Taxable income $\quad$$\quad$$\quad$$\quad$$\quad$ $ 8,365,530 
a. Compute Krasco's tax expense per books and tax payable.
b. Compute Krasco's net increase in deferred tax assets or deferred tax liabilities (identify which) for the year.

Krasco Inc \quad \quad \quad $ 8,288,900 Net Permanent Differences \quad

Krasco Inc $\quad$ $\quad$ $\quad$ $ 8,288,900
Net Permanent Differences $\quad$