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Posted: April 20th, 2022

Hertz Co. financial statement, accounting homework help

Question Assignment description

(TCO
B) Hertz Co. ready the next reconciliation of its pretax
financial assertion revenue to taxable revenue for the 12 months ended December
31, 2013, its first 12 months of operations:

Pretax financial revenue      $300,000
Nontaxable curiosity acquired on municipal securities     (15,000)
Estimated warranties not deductible for tax objective in 2013    35,000
Depreciation in extra of financial assertion quantity       (30 ,000)
Taxable revenue     $290,000

Hertz’s tax fee for 12 months 2013 and for future years is 40%.

(a) In its 12 months 1 revenue assertion, what quantity ought to Hertz report as revenue tax expense-current portion?
(b) In its December 31, 2013  steadiness sheet, what quantity  ought to Hertz report as deferred revenue tax legal responsibility/asset?

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