Myerson Company reported taxable income of $60,000 for 2014,its first year of operations.This amount reflects temporary differences between financial and taxable income that are scheduled to reverse in subsequent years as shown below.As of December 31,2014,the enacted tax rate for 2014 and future years was 40 percent.

Use the provisions of FASB Statement No.109 and assume that it is more likely than not that income will be sufficient in all future years to realize any deductible amounts.Also assume that all the temporary differences relate to noncurrent items.
Compute the amount of the deferred tax assets and/or liabilities that would be reported on Myerson's balance sheet as of December 31,2014.

Question

Myerson Company reported taxable income of $60,000 for 2014,its first year of operations.This amount reflects temporary differences between financial and taxable income that are scheduled to reverse in subsequent years as shown below.As of December 31,2014,the enacted tax rate for 2014 and future years was 40 percent.
  
Use the provisions of FASB Statement No.109 and assume that it is more likely than not that income will be sufficient in all future years to realize any deductible amounts.Also assume that all the temporary differences relate to noncurrent items.
Compute the amount of the deferred tax assets and/or liabilities that would be reported on Myerson's balance sheet as of December 31,2014.

Quizplus · Accepted Answer

The Answer of Myerson Company reported taxable income of $60,000 for 2014,its first year of operations.This amount reflects temporary differences between financial and taxable income that are scheduled to reverse in subsequent years as shown below.As of December 31,2014,the enacted tax rate for 2014 and future years was 40 percent.
  
Use the provisions of FASB Statement No.109 and assume that it is more likely than not that income will be sufficient in all future years to realize any deductible amounts.Also assume that all the temporary differences relate to noncurrent items.
Compute the amount of the deferred tax assets and/or liabilities that would be reported on Myerson's balance sheet as of December 31,2014.

Myerson Company Reported Taxable Income of $60,000 for 2014,its First