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A company prepared the following reconciliation for 2021: Pretax financial income for 2021 $ 2,600 Originating temporary difference 370 Permanent difference 180 Taxable income $xxxx
A company prepared the following reconciliation for 2021:
Pretax financial income for 2021 $ 2,600
Originating temporary difference 370
Permanent difference 180
Taxable income $xxxx (figure this amount out on your own)
The temporary difference will reverse evenly over the next two years (note: the parentheses outside the temporary difference mean subtraction). The enacted tax rate is 30% for all years. Compute the companys income tax expense for 2021.
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