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Blossom Corporation prepared the following reconciliation for its first year of operations: Pretax financial income for 2021 $1150000 Tax exempt interest (137000) Originating temporary difference
Blossom Corporation prepared the following reconciliation for its first year of operations:
Pretax financial income for 2021 $1150000
Tax exempt interest (137000)
Originating temporary difference (324000)
Taxable income $689000
The temporary difference will reverse evenly over the next 2 years at an enacted tax rate of 30%. The enacted tax rate for 2021 is 25%.
In Blossoms 2021 income statement, what amount should be reported for total income tax expense?
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