will really appreciate if anyone could help me understand how they have computed the answer of this question… its about deferred taxes… my weakest area
I was also a little confused about how they calculated this. It seemed almost like a typo to me. In the question they give you the “Current Income Tax Expense” of $1000. And then they ask, “what is the income tax expense?” If that info has said “income tax payable” I would have got it. (i.e. income tax expense = income tax payable + Change in DTL - Change in DTA).
So… does “current” income tax expense equal to “tax payable”. That is the question I guess.
btw - I got this wrong on the test and went for the $1000 answer thinking it was a trick question.