Question
Cullumber Corporation prepared the following reconciliation for its first year of operations: Pretax financial income for 2021 $2400000 Tax exempt interest (162000) Originating temporary
Cullumber Corporation prepared the following reconciliation for its first year of operations: Pretax financial income for 2021 $2400000 Tax exempt interest (162000) Originating temporary difference (374000) Taxable income $1864000 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 25%. In Cullumber's 2021 income statement, what amount should be reported for total income tax expense? O O $648600 $466000 $600000 $578200
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