# /// script
# requires-python = ">=3.12"
# dependencies = []
# exclude-newer = "2026-08-08T00:00:00Z"
# ///
"""Readable income-tax provision bridge for a fictional Cedar Trail scenario."""

from __future__ import annotations


def money(amount: float) -> str:
    """Format dollars with commas and accounting parentheses."""
    return f"({abs(amount):,.2f})" if amount < 0 else f"{amount:,.2f}"


def percent(rate: float) -> str:
    return f"{rate:.2%}"


def show_table(title: str, rows: list[tuple[str, float]]) -> None:
    print(f"\n{title}")
    print("-" * len(title))
    width = max(len(label) for label, _ in rows)
    for label, amount in rows:
        print(f"{label:<{width}}  {money(amount):>16}")


# Current return rail. Positive adjustments increase taxable income.
pretax_book_income = 1_000_000.00
current_adjustments = {
    "Additional tax depreciation": -120_000.00,
    "Warranty deductible later": 60_000.00,
    "Tax-exempt municipal interest": -20_000.00,
    "Nondeductible penalty": 10_000.00,
    "NOL deduction": -100_000.00,
}
current_rate = 0.21
current_credit = 4_300.00

taxable_income = pretax_book_income + sum(current_adjustments.values())
gross_current_tax = taxable_income * current_rate
return_current_tax = gross_current_tax - current_credit

show_table(
    "Book-to-taxable-income bridge",
    [
        ("Pretax book income", pretax_book_income),
        *current_adjustments.items(),
        ("Taxable income", taxable_income),
    ],
)
show_table(
    "Current return tax",
    [
        ("Gross current tax", gross_current_tax),
        ("Current tax credit", -current_credit),
        ("Return current tax", return_current_tax),
    ],
)

# Ending deferred rail. Tax bases and reversal conclusions are supplied facts.
deferred_rows = [
    ("Equipment", "DTL", 300_000.00, 0.21, 0.25),
    ("Warranty", "DTA", 120_000.00, 0.21, 0.25),
    ("Accrued compensation", "DTA", 80_000.00, 0.21, 0.21),
    ("NOL carryforward", "DTA", 200_000.00, 0.21, 0.21),
]
tax_credit_dta = 15_000.00

gross_dta = tax_credit_dta
gross_dtl = 0.00
rate_change_effect = 0.00
print("\nDeferred-tax measurement")
print("------------------------")
print(f"{'Source':<24} {'Kind':<5} {'Future amount':>16} {'Rate':>9} {'Deferred tax':>16}")
for label, kind, future_amount, enacted_rate, old_rate in deferred_rows:
    deferred_tax = future_amount * enacted_rate
    if kind == "DTA":
        gross_dta += deferred_tax
        rate_change_effect -= future_amount * (enacted_rate - old_rate)
    else:
        gross_dtl += deferred_tax
        rate_change_effect += future_amount * (enacted_rate - old_rate)
    print(
        f"{label:<24} {kind:<5} {money(future_amount):>16} "
        f"{percent(enacted_rate):>9} {money(deferred_tax):>16}"
    )
credit_label = "Tax credit carryforward"
print(
    f"{credit_label:<24} {'DTA':<5} {'direct tax amount':>16} "
    f"{'—':>9} {money(tax_credit_dta):>16}"
)

opening_gross_dta = 102_400.00
opening_gross_dtl = 40_000.00
opening_allowance = 15_000.00
ending_allowance = 20_000.00
opening_net_liability = opening_gross_dtl - (opening_gross_dta - opening_allowance)
ending_net_liability = gross_dtl - (gross_dta - ending_allowance)
deferred_tax_expense = ending_net_liability - opening_net_liability

show_table(
    "Deferred-tax bridge",
    [
        ("Gross deferred tax asset", gross_dta),
        ("Gross deferred tax liability", gross_dtl),
        ("Ending valuation allowance", ending_allowance),
        ("Opening net deferred liability", opening_net_liability),
        ("Ending net deferred liability", ending_net_liability),
        ("Deferred tax expense", deferred_tax_expense),
        ("Enacted-rate change effect", rate_change_effect),
    ],
)

# Supplied uncertain-position conclusion and probability measurement.
return_benefit = 50_000.00
settlement_outcomes = [(50_000.00, 0.20), (40_000.00, 0.35), (20_000.00, 0.30), (0.00, 0.15)]
cumulative = 0.00
recognized_benefit = 0.00
print("\nUncertain-position measurement")
print("------------------------------")
print(f"{'Benefit sustained':>18} {'Probability':>13} {'Cumulative':>13}")
for benefit, probability in settlement_outcomes:
    cumulative += probability
    if recognized_benefit == 0 and cumulative > 0.50:
        recognized_benefit = benefit
    print(f"{money(benefit):>18} {percent(probability):>13} {percent(cumulative):>13}")

opening_unrecognized_benefit = 6_000.00
ending_unrecognized_benefit = return_benefit - recognized_benefit
uncertain_tax_expense = ending_unrecognized_benefit - opening_unrecognized_benefit
interest_and_penalties = 2_000.00
recognized_current_tax_expense = return_current_tax + uncertain_tax_expense + interest_and_penalties
total_tax_expense = recognized_current_tax_expense + deferred_tax_expense

show_table(
    "Provision",
    [
        ("Recognized current tax expense", recognized_current_tax_expense),
        ("Deferred tax expense", deferred_tax_expense),
        ("Total tax expense", total_tax_expense),
    ],
)

# Intraperiod allocation and cash-tax disclosure are separate controls.
oci_tax_benefit = -6_000.00
discontinued_tax_expense = 12_000.00
continuing_tax_expense = total_tax_expense - oci_tax_benefit - discontinued_tax_expense
taxes_paid = {"Federal": 120_000.00, "State": 25_000.00, "Foreign": 15_000.00}
cash_taxes_paid = sum(taxes_paid.values())
paid_threshold = cash_taxes_paid * 0.05
opening_current_payable = 30_000.00
ending_current_payable = opening_current_payable + return_current_tax - cash_taxes_paid

show_table(
    "Intraperiod allocation",
    [
        ("Continuing operations", continuing_tax_expense),
        ("Discontinued operations", discontinued_tax_expense),
        ("Other comprehensive income", oci_tax_benefit),
        ("Total tax expense", total_tax_expense),
    ],
)
print(f"\nEffective tax rate: {percent(total_tax_expense / pretax_book_income)}")
print(f"Taxes-paid 5% threshold: {money(paid_threshold)}")
for jurisdiction, amount in taxes_paid.items():
    route = "separate" if amount >= paid_threshold else "aggregate"
    print(f"  {jurisdiction:<10} {money(amount):>16}  {route}")
print(f"Ending current tax payable: {money(ending_current_payable)}")

# Arithmetic release controls. They do not approve the supplied judgments.
assert abs(taxable_income - 830_000.00) < 0.01
assert abs(return_current_tax - 170_000.00) < 0.01
assert abs(gross_dta - 99_000.00) < 0.01
assert abs(gross_dtl - 63_000.00) < 0.01
assert abs(rate_change_effect - (-7_200.00)) < 0.01
assert abs(recognized_benefit - 40_000.00) < 0.01
assert abs(total_tax_expense - 207_400.00) < 0.01
assert (
    abs(continuing_tax_expense + discontinued_tax_expense + oci_tax_benefit - total_tax_expense)
    < 0.01
)
assert abs(ending_current_payable - 40_000.00) < 0.01
print("\nArithmetic controls: PASS")