A company is computing intraperiod tax allocation for the current year and has accumulated the following income and loss items:

The tax rate for the current year is 21%.
Tax credits of $100,000 are available for use by the company, and the credits are limited to 90% of tax payable.

Required Determine the tax expense or tax benefit applicable to each of the company's income or expense items.

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Income from continuing operations $160,000 Segment disposition (64,000) Gain included in comprehensive income 32,000 Prior period adjustment Total (40,000) $88,000 There is one item included in continuing operations that is nontaxable (permanent difference):