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5 pts The Corporation's partial income statement after its first year of operations is as follows: Income before income taxes $3,750,000 Income tax expense Current
5 pts The Corporation's partial income statement after its first year of operations is as follows: Income before income taxes $3,750,000 Income tax expense Current $1,035,000 Deferred 90,000 1,125,000 Net income $2,625,000 The Corporation uses the straight-line method of depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The amount charged to depreciation expense on its books this year was $2,800,000. No other differences existed between book income and taxable income except for the amount of depreciation. Assuming a 30% tax rate, what amount was deducted for depreciation on the corporation's tax return for the current year? $2,800,000 $1,125,000 $3,100,000 O $2,500,000
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