Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cullumber Corporation prepared the following reconciliation for its first year of operations: Pretax financial income for 2021 $3300000 Tax exempt interest (162000) Originating temporary difference
Cullumber Corporation prepared the following reconciliation for its first year of operations:
Pretax financial income for 2021 | $3300000 |
Tax exempt interest | (162000) |
Originating temporary difference | (474000) |
Taxable income | $2664000 |
The temporary difference will reverse evenly over the next 2 years at an enacted tax rate of 30%. The enacted tax rate for 2021 is 20%. What amount should be reported in its 2021 income statement as the current portion of its provision for income taxes?
| $532800 |
| $799200 |
| $660000 |
| $990000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started