Question
Cullumber Corp.'s books showed pretax financial income of $4800000 for the year ended December 31, 2018. In the computation of federal income taxes, the following
Cullumber Corp.'s books showed pretax financial income of $4800000 for the year ended December 31, 2018. In the computation of federal income taxes, the following data were considered:
Gain on an involuntary conversion $2160000
(Cullumber has elected to replace the property within the statutory
period using total proceeds.)
Depreciation deducted for tax purposes in excess of depreciation
deducted for book purposes 252000
Federal estimated tax payments, 2018 312000
Enacted federal tax rate, 2018 40%
What amount should Cullumber report as its current federal income tax liability on its December 31, 2018 balance sheet?
$744000
$1056000
$643200
$955200
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