A company reported income taxes payable of $99,700,an increase in deferred tax assets of $19,900,and a decrease in deferred tax liabilities of $9,550;therefore book income tax expense equals $70,250.

Question

Quizplus · Accepted Answer

Book income tax expense can be calculated as:
Book income tax expense = Income taxes payable + Increase in Deferred Tax Assets - Decrease in Deferred Tax Liabilities
Substituting the given values:
Book income tax expense = $99,700 + $19,900 - $9,550 = $70,250. Therefore, the statement is true.

A Company Reported Income Taxes Payable of $99,700,an Increase in Deferred