What was the deferred benefit (expense) for Fast Fix Jewelry And Watch Repairs in 2022?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
ctivities of the consolidated statements of cash flow.
Note 8. Income Taxes
The components of the income tax benefit (expense) are as follows for the years ended December 31:
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 37)
What This Means (2025 FDD)
According to Fast Fix Jewelry And Watch Repairs's 2025 Franchise Disclosure Document, the deferred benefit (expense) for the company in 2022 was $20,991. This figure represents the amount by which the company's deferred tax assets or liabilities changed during that year. A deferred tax benefit arises when taxable income is expected to be lower in the future, while a deferred tax expense arises when taxable income is expected to be higher in the future.
For a prospective Fast Fix Jewelry And Watch Repairs franchisee, understanding deferred tax implications is crucial for financial planning. A deferred tax benefit can be seen as a potential future tax savings, while a deferred tax expense indicates a future tax obligation. These amounts can impact the overall profitability and cash flow of the franchise.
It's important to note that deferred tax assets are subject to valuation allowances if it is determined that they are unlikely to be realized. However, the FDD states that no valuation allowance was considered necessary as of December 31, 2023 and 2022. This suggests that Fast Fix Jewelry And Watch Repairs believed it was likely to realize its deferred tax assets during those years.