Question

Alamo Inc. had $250 million in taxable income for the current year. Alamo also had a decrease in deferred tax assets of $33 million and an increase in deferred tax liabilities of $65 million. The company is subject to a tax rate of 32%. The total income tax expense for the year was:

Multiple Choice

$178 million.

$137 million.

$348 million.

$170 million.

Answer 1

				*1
	Current Taxes *1	80.00		Current Expenses:
	Deferred Taxes *2	98.00		Taxable Income	250
	Total Taxes	178.00		Tax Rate	32%
				Current Taxes	80
				*2
				Deferred Tax Assets	Decrease	33.00	(PL Debited)
				Deferred Tax Liabilities	Increase	65.00	(PL Debited)
				Net Impact		98.00	(PL Debited)