(Solution) - Yosef Company began operating on January 1 2012 At the -(2025 Original AI-Free Solution)

Paper Details

Yosef Company began operating on January 1, 2012. At the end of the first year of operations, Yosef reported $750,000 income before income taxes on its income statement but only $660,000 taxable income on its tax return. This difference arose because $90,000 in income earned during 2012 was not yet taxable according to the income tax regulations. The tax rate is 35%.
1. Compute the amount of income tax that Yosef legally owes for taxable income generated during 2012.
2. Compute the amount of income tax expense to be reported on Yosef?s income statement for 2012.
3. State whether Yosef has a deferred income tax asset or a deferred income tax liability as of the end of 2012. What is the amount of the asset or liability?