What is the total amount of deferred tax assets for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
The tax effects of temporary differences between financial statements and tax reporting give rise to deferred tax assets and deferred tax liabilities are presented below:
| Allowance for doubtful accounts | $ 54,000 |
|---|---|
| Change in accruals | 9,000 |
| Total deferred tax assets | 63,000 |
| Deferred tax liability: | |
| Property and equipment | (19,000) |
| Total deferred tax liability | (19,000) |
| Net deferred tax asset | $ 44,000 |
M & T PIZZA INCORPORATED AND SUBSIDIARIES Notes to Consolidated Financial Statements
For the Year Ended October 31, 2024
5. Income Taxes (Continued)
The Company's provision for income taxes differs from applying the statutory U.S. federal income tax rate to income before income taxes.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the total amount of deferred tax assets is available for two fiscal years. As of October 31, 2024, the total deferred tax assets were $44,000. This figure is calculated by considering an allowance for doubtful accounts ($54,000), a change in accruals ($9,000), and a deferred tax liability related to property and equipment ($19,000). The net deferred tax asset for this period was $44,000.
For the year ended October 31, 2023, the total deferred tax assets were $39,000. This amount is derived from an allowance for doubtful accounts ($34,000), a change in accruals ($5,000), and a deferred tax liability for property and equipment ($26,000). The resulting net deferred tax asset for this period was $13,000.
These figures reflect the company's accounting practices related to income taxes, where deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between financial reporting and tax bases. A valuation allowance is recorded if it's deemed more likely than not that some deferred tax assets will not be realized. Prospective franchisees should understand these deferred tax positions as they reflect the financial health and tax planning strategies of Carbones Pizzeria.