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Illusions Inc. just completed its second year of operations and has a deferred tax asset of?...

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Accounting

Illusions Inc. just completed its second year of operations andhas a deferred tax asset of? $47,500 related to a net operatingloss of? $125,000 from the previous year. In the current yearIllusions generates? $400,000 in revenues and incurs? $250,000 inexpenses. There are no permanent or temporary? book-taxdifferences. Assuming the same tax rate as last? year, what amountwill Illusions record for Income Tax Payable in the current?year?

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All working forms part of the answer Calculation of Tax rate A Deferred Tax Assets 4750000 B Net Operating Loss 12500000 C AB Tax Rate 38    See Answer
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