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Black, Inc

Question 63

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Black, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Assume a 35% corporate tax rate and no valuation allowance.
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Black, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Assume a 35% corporate tax rate and no valuation allowance. ​ ​ Black, Inc.'s, gross deferred tax assets and liabilities at the beginning of Black's year are listed below. ​ ​ Black, Inc.'s, book income before tax is $6,000. Black records two permanent book-tax differences. It earned $250 in tax-exempt municipal bond interest, and it incurred $500 in nondeductible meals and entertainment expense. Determine Black's change in net deferred tax asset or net deferred tax liability for the current year, and provide the journal entry to record this amount.
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Black, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Assume a 35% corporate tax rate and no valuation allowance. ​ ​ Black, Inc.'s, gross deferred tax assets and liabilities at the beginning of Black's year are listed below. ​ ​ Black, Inc.'s, book income before tax is $6,000. Black records two permanent book-tax differences. It earned $250 in tax-exempt municipal bond interest, and it incurred $500 in nondeductible meals and entertainment expense. Determine Black's change in net deferred tax asset or net deferred tax liability for the current year, and provide the journal entry to record this amount.
Black, Inc.'s, gross deferred tax assets and liabilities at the beginning of Black's year are listed below.
Black, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Assume a 35% corporate tax rate and no valuation allowance. ​ ​ Black, Inc.'s, gross deferred tax assets and liabilities at the beginning of Black's year are listed below. ​ ​ Black, Inc.'s, book income before tax is $6,000. Black records two permanent book-tax differences. It earned $250 in tax-exempt municipal bond interest, and it incurred $500 in nondeductible meals and entertainment expense. Determine Black's change in net deferred tax asset or net deferred tax liability for the current year, and provide the journal entry to record this amount.
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Black, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Assume a 35% corporate tax rate and no valuation allowance. ​ ​ Black, Inc.'s, gross deferred tax assets and liabilities at the beginning of Black's year are listed below. ​ ​ Black, Inc.'s, book income before tax is $6,000. Black records two permanent book-tax differences. It earned $250 in tax-exempt municipal bond interest, and it incurred $500 in nondeductible meals and entertainment expense. Determine Black's change in net deferred tax asset or net deferred tax liability for the current year, and provide the journal entry to record this amount.
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Black, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Assume a 35% corporate tax rate and no valuation allowance. ​ ​ Black, Inc.'s, gross deferred tax assets and liabilities at the beginning of Black's year are listed below. ​ ​ Black, Inc.'s, book income before tax is $6,000. Black records two permanent book-tax differences. It earned $250 in tax-exempt municipal bond interest, and it incurred $500 in nondeductible meals and entertainment expense. Determine Black's change in net deferred tax asset or net deferred tax liability for the current year, and provide the journal entry to record this amount.
Black, Inc.'s, book income before tax is $6,000. Black records two permanent book-tax differences.
It earned $250 in tax-exempt municipal bond interest, and it incurred $500 in nondeductible meals
and entertainment expense. Determine Black's change in net deferred tax asset or net deferred tax
liability for the current year, and provide the journal entry to record this amount.

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