In 2020, a company has an accounts receivable of $20,000 for products that were delivered to...

In 2020, a company has an accounts receivable of $20,000 for products that were delivered to the customer in 2020. It will be collected in 2021. The company has a tax rate of 30% and taxable income of $216,000 at the end of 2020. There were no deferred taxes at the beginning of 2020. What is the amount of income tax expense for 2020?

Expert Solution

INCOME TAX EXPENSE

= INCOME TAX EXPENSE + DEFERRED TAX EXPENSE

= (216000*30%) + ( 20000*30%)

= 64800 + 6000

= $70800

ekkarill92 answered 2 years ago

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