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A company's income statement showed pretax accounting income of $1,050,000. To compute the federal income tax liability, the following annual data are provided Ans a
A company's income statement showed pretax accounting income of $1,050,000. To compute the federal income tax liability, the following annual data are provided Ans a GAAP income $1,050,000 Permanent difference (41,000) Deferred tax liability ( 97,000) Taxable income $912,000 Income from exempt municipal bonds: $41,000 Depreciation deducted for tax purposes in excess of depreciation deducted for financial statement purposes: $97,000 Estimated federal income tax payments: $163,625 $912,000 x 27.5% = $250,800 $250,800 - $163,625 = $87,1758 Enacted corporate income tax rate: 27.5% Which amount of current federal income tax liability should be included in the balance sheet at the end of the current year $250,800,$288,750,$87,175,$113,850
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