CC Corporation provides you with the following information from its accounting records this year related to income and all book$-$tax differences.

Pre$-$tax book income: $$319,000$

GAAP warranty expense: $$43,000$; allowable warranty deductions: $$37,000$

Bribes and penalties: $$14,000$

Tax depreciation in excess of book depreciation: $$36,000$

Nondeductible meal costs: $$9,000$

Other tax exempt income: $$11,000$

Capital loss recognized on books in current year: $$12,000($there were no capital gains this year$)$

Assume that only $$7,000$ of the capital loss carryforward has a greater than $50\%$ chance of being

deducted before expiration.

Using this information, calculate both current and deferred tax expense for CC Corporation assuming a constant $21\%$ tax rate for all years.

Be sure to show your work for partial credit. Also, you do not need to show any journal entries, just the totals for current and deferred tax expense. Please clearly label each amount.

Answer rating: 100% (QA)

To calculate the current and deferred tax expense for CC Corporation we need to identify the taxable ... View the full answer