Explain why tax expense is not simply the amount of cash paid during the year.

Computing Deferred Income Tax (Supplement B) – The following information pertains to the Lewis Corporation.

Year 2011

Year 2012

Income taxes payable

$250,000

$290,000

Increase in deferred tax liability

54,000

58,000

Required:

1. For each year, compute income tax expense ( assume that no taxes have been paid).

2. Explain why tax expense is not simply the amount of cash paid during the year.

 

Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Use Code FREE15