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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:

  1. Compute Corporation Hs tax expense for financial statement purposes.
  2. Compute Corporation Hs tax payable.
  3. Compute the net increase in Corporation Hs deferred tax assets or deferred tax liabilities (identify which) for the year.

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