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Corporation Hs auditors prepared the following reconciliation between book and taxable income. Hs tax rate is 21 percent. Net income before tax $ 636,000 Permanent
Corporation Hs auditors prepared the following reconciliation between book and taxable income. Hs tax rate is 21 percent.
Net income before tax | $ | 636,000 | ||
Permanent book/tax differences | 33,000 | |||
Temporary book/tax differences | (94,000 | ) | ||
Taxable income | $ | 575,000 | ||
Required:
- Compute Corporation Hs tax expense for financial statement purposes.
- Compute Corporation Hs tax payable.
- Compute the net increase in Corporation Hs deferred tax assets or deferred tax liabilities (identify which) for the year.
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