Company expects taxable income for future


Wright Co., organized on January 2, 2010, had pretax accounting income of $880000 and taxable income of $1600000 for the year ended December 31, 2010. the only temp. difference are warranty costs paid as follows:

2011 240k
2012 120k
2013 120k
2041 240k

Enacted income tax rates are as follows:

2010 35%; 2011-2013 30%; 2014 25%. If the company expects taxable income for future yrs, the deferred tax assets on the Dec 31, 2010 balance sheet would be (what amount)?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Company expects taxable income for future
Reference No:- TGS073139

Expected delivery within 24 Hours