Question

Feagler Company’s current income taxes payable related to its taxable income for 2017 is \(460,000. In addition, Feagler’s deferred tax asset decreased \)20,000 during 2017. What is Feagler’s income tax expense for 2017?

Short answer

An assetis a column in the organization's balance sheet that considers the future benefits of an organization in the form of cash. It is also used in various turnover ratios.

Step-by-step solution

Given the amounts as

Particulars	Amount
Taxable income	$460,000
Deferred tax asset	$20,000

Calculation of income tax expense for 2017

$\begin{array}{rcl}\mathrm{Income}\mathrm{tax}\mathrm{expense}& =& \mathrm{Taxable}\mathrm{income}+\mathrm{Deferred}\mathrm{tax}\mathrm{asset}\\ & =& \$460,000+\$20,000\\ & =& \$480,000\end{array}$