During 2015,a company reported an increase in the deferred tax liability account of $47,790,a decrease in the deferred tax asset account of $17,225,and an income tax liability as per the 2015 income tax return of $198,375.What is the income tax expense to be reported on the income statement for the year ending December 31,2015?

Question

Quizplus · Accepted Answer

The income tax expense is calculated by adding the increase in deferred tax liability, subtracting the decrease in deferred tax asset from the income tax liability. Thus, $198,375 + $47,790 - $17,225 = $228,940.

During 2015,a Company Reported an Increase in the Deferred Tax