The following facts relate to Sheridan Corporation. 1. Deferred tax liability, January 1, 2017, $67,800. 2....

The following facts relate to Sheridan Corporation.

1.		Deferred tax liability, January 1, 2017, $67,800.
2.		Deferred tax asset, January 1, 2017, $22,600.
3.		Taxable income for 2017, $118,650.
4.		Cumulative temporary difference at December 31, 2017, giving rise to future taxable amounts, $259,900.
5.		Cumulative temporary difference at December 31, 2017, giving rise to future deductible amounts, $107,350.
6.		Tax rate for all years, 40%. No permanent differences exist.
7.		The company is expected to operate profitably in the future.

A. Compute the amount of pretax financial income for 2017.

B. Prepare the income tax expense section of the income statement for 2017, beginning with the line “Income before income taxes.” (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

C.Compute the effective tax rate for 2017. (Round answer to 0 decimal places, e.g. 25%)

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ekkarill92 answered 10 months ago

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