T'S Surf Shop had a taxable income in 2003 of $500,000 and a pretax financial income of $600,000. The company had a cumulative $200,000 difference between its taxable income and pretax financial statement income at Dec 31, 2002. These differences were solely related to accelerated depreciation methods used for income tax purposes. The enacted tax rate increased to 30% in 2003 compared to an enacted tax rate of 20% in the prior year. At Dec 31, 2003, the company would record a deferred tax expense of?© BrainMass Inc. brainmass.com March 4, 2021, 8:11 pm ad1c9bdddf
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