Question

In 2017, HD had reported a deferred tax asset of $58 million with no valuation allowance. At December 31, 2018, the account balances of HD Services showed a deferred tax asset of $80 million before assessing the need for a valuation allowance and income taxes payable of $57 million. HD determined that it was more likely than not that 30% of the deferred tax asset ultimately would not be realized. HD made no estimated tax payments during 2018. What amount should HD report as income tax expense in its 2018 income statement? (Round your calculations to the nearest whole million.)

in 2017, HD had reported a deferred tax asset of $58 milion with no valuation alowance At December 31, 2018, the account baiances of HD Services showed a deferred tax asset of $80 milion before assessing the need for a velustion allowance and income taxes payable of $57 miion HD determined that t was more likely than not thet 30% of the deferred tax asset ultimately would not be reallized HD made no estimated tax payments during 2018. What amount should HD report as income tax expense in its 2018 income stotement? (Round your calculetlons to the nearest whole miien) Mutple Choce

Answer 1

Solotion Income tay expense Calaulahon Intome bye paable 80-58 22 LusIncreaye in Dejerred ty asset 8ox 30 Add: Valuaton allowance 24 Income tay erp Mllong