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?

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Expert Solution

INCOME TAX EXPENSE

= INCOME TAX EXPENSE + DEFERRED TAX EXPENSE

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

= 64800 + 6000

= $70800

ekkarill92 answered 1 year ago

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