What were the deferred income taxes for Best In Class Education Center in 2023?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
DVERTISING EXPENSES
Advertising costs for the period from February 10, 2023 to December 31, 2023 were $20,336. These costs were expensed as incurred.
8. STOCKHOLDERS' EQUITY
Under the articles of incorporation, the total number of common shares of stock that the Corporation shall have the authority to issue is 10,000,000 shares with a par value of $0.01 per share, none were issued or outstanding. As of December 31, 2023, the entity had $100,000 in additional paid-in capital.
9. INCOME TAXES
The deferred tax assets in the accompanying balance sheets include the following components:
| Deferred income taxes | $ 8,668 |
|---|
The Company's 2023 effective income tax rate is 21% federal and 7% state. The Company had income tax benefits of $8,668 for the year ended December 31, 2023.
10. SUBSEQUENT EVENTS
Management has evaluated subsequent events through April 30, 2024, which is the date the financial statements were available to be issued.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Best In Class Education Center does not explicitly state the exact amount of deferred income taxes for 2023. However, it does provide some related information regarding income taxes.
Specifically, the FDD mentions that Best In Class Education Center uses the liability method for income taxes, which involves recognizing taxes payable or refundable for the current year, as well as deferred tax liabilities and assets for the future tax consequences of events already recognized in the financial statements or tax returns. These deferred taxes represent the future tax return consequences of differences, which will either be deductible or taxable when the assets and liabilities are recovered or settled. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect when these temporary differences are recovered or settled.
Additionally, the FDD notes that the company's effective income tax rate for 2023 was 21% federal and 7% state. Best In Class Education Center also had income tax benefits of $8,668 for the year ended December 31, 2023. It is important to note that this benefit is not the same as deferred income taxes. To obtain the specific deferred income tax figures, a prospective franchisee should directly ask Best In Class Education Center for their detailed financial statements or consult with a financial advisor.