Prance, Inc., earns pretax book net income of $800,000 in 2014. Prance acquires a depreciable asset in
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Prance, Inc., earns pretax book net income of $800,000 in 2014. Prance acquires a depreciable asset in 2014, and first-year tax depreciation exceeds book depreciation by $80,000. Prance reported no other temporary or permanent book-tax differences. Assuming that the pertinent U.S. tax rate is 35%, compute Prance's total income tax expense, current income tax expense, and deferred income tax expense.
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The booktax basis difference in the depreciable asset is 80000 The deferred tax ...View the full answer
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Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts
ISBN: 9781305399884
39th Edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
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