Cass Corporation reported pretax book income of $ 8 , 7 0 0 , 0 0 0 During the current year, the reserve for bad debts increased by $ 1 1 7 , 5 0 0 In addition, tax depreciation exceeded book depreciation by $ 4 3 0 , 0 0 0 Cass Corporation sold a fixed asset and reported book gain of $ 7 4 , 2 5 0 and tax gain of $ 1 0 4 , 2 5 0 Finally, the company received $ 2 5 2 , 0 0 0 of tax exempt life insurance proceeds from the death of one of its officers Compute the company's current income tax expense or benefit Note Round your final answer to nearest whole dollar amount Amounts to be deducted should be indicated by a minus sign Pre taxbook income Bad Debt reserve Depreciation Fixed asset gain Tax exempt life insurance proceeds Taxable income

Question

Cass Corporation reported pretax book income of $ 8 , 7 0 0 , 0 0 0   During the current year, the reserve for bad debts increased by $ 1 1 7 , 5 0 0   In addition, tax depreciation exceeded book depreciation by $ 4 3 0 , 0 0 0   Cass Corporation sold a fixed asset and reported book gain of $ 7 4 , 2 5 0 and tax gain of $ 1 0 4 , 2 5 0   Finally, the company received $ 2 5 2 , 0 0 0 of tax   exempt life insurance proceeds from the death of one of its officers  Compute the company's current income tax expense or benefit  Note  Round your final answer to nearest whole dollar amount  Amounts to be deducted should be indicated by a minus sign  Pre taxbook income  Bad Debt reserve  Depreciation  Fixed asset gain  Tax   exempt life insurance proceeds  Taxable income

Accepted Answer

The Answer is in the image, click to view ...

Question

Cass Corporation reported pretax book income of $ 8 , 7 0 0 , 0 0 0 . During the current year, the reserve for

Step by Step Solution

Step: 1

Get Instant Access with AI-Powered Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question