What was the expense (benefit) from income taxes for Ledgers in 2024?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTE 5 - CURRENT EXPECTED CREDIT LOSSES
Changes in the allowance for credit losses during the year are as follows:
| Balance, January 1, 2023 | $ | - |
|---|---|---|
| Adoption of Topic 326 | 42 | 2,286 |
| Allowance for credit losses | (26 | 5,439) |
| Balance, December 31, 2023 | 15 | ,847 |
| Write-offs | (15 | 5, |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the expense (benefit) from income taxes in 2024 was a benefit of $(104,000). This figure reflects the reduction in income taxes due to various factors, such as deferred tax assets.
Deferred tax (benefit) includes both federal and state components. The federal deferred tax benefit was $(86,000), while the state deferred tax benefit was $(18,000). These benefits contribute to the overall expense (benefit) from income taxes.
It's important to note that these figures are based on Ledgers's accounting practices and tax status as a C Corporation. The company uses the asset and liability method to account for income taxes, which involves assessing temporary differences between financial statement and tax bases of assets and liabilities. Prospective franchisees should consult with a financial advisor to understand the implications of these tax benefits in their specific circumstances.