Question
Blossom Corporation's partial income statement after its first year of operations is as follows: Income before income taxes$3726000 Income tax expenseCurrent$1015000Deferred882001103200Net income$2622800 Blossom uses the
Blossom Corporation's partial income statement after its first year of operations is as follows:
Income before income taxes$3726000
Income tax expenseCurrent$1015000Deferred882001103200Net income$2622800
Blossom 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 $2780000. 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?
$2486000
$1117800
$2780000
$3074000
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