Hertz Co. financial statement, accounting homework help

Aug 1st, 2016
Price: $10 USD

Question description

(TCO B) Hertz Co. prepared the following reconciliation of its pretax financial statement income to taxable income for the year ended December 31, 2013, its first year of operations:

Pretax financial income      $300,000
Nontaxable interest received on municipal securities     (15,000)
Estimated warranties not deductible for tax purpose in 2013    35,000
Depreciation in excess of financial statement amount       (30 ,000)
Taxable income     $290,000

Hertz’s tax rate for Year 2013 and for future years is 40%.

(a) In its Year 1 income statement, what amount should Hertz report as income tax expense-current portion?
(b) In its December 31, 2013  balance sheet, what amount  should Hertz report as deferred income tax liability/asset?

Tutor Answer

(Top Tutor) Daniel C.
School: University of Virginia


Studypool has helped 1,244,100 students

Review from our student for this Answer

Aug 1st, 2016
"The best tutor out there!!!!"
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1829 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors