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Could you explain the solution? Cavan Company prepared the following reconciliation between book income and taxable income for the current year E: (Click the icon

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Cavan Company prepared the following reconciliation between book income and taxable income for the current year E: (Click the icon to view the reconciliation.) Cavan's effective income tax rate for Year 1 is 30%. The depreciation difference will reverse equally over the next 3 years at enacted tax rates as follows: (Click the icon to view the enacted tax rates.) In Cavan's Year 1 Income Statement, the current portion of its provision for income taxes should be: Data table Pretax accounting More info Taxable income $ 1,000,000 (600,000) $ 400.000 O A. $300,000 O B. $210.000 Year Tax Rate % $ C. $180,000 Year 2 Difference Differences Interest on municipal income Lower financial depreciation Total 21 % 100,000 300.000 OD. $126.000 Year 3 21 $ 400,000 Year 4 21 Print Done Print Done

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