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Hafnaoui Company reported pretax net income from continuing operations of $1,059,000 and taxable income of $670,000. The booktax difference of $389,000 was due to a
Hafnaoui Company reported pretax net income from continuing operations of $1,059,000 and taxable income of $670,000. The booktax difference of $389,000 was due to a $297,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $171,000 due to an increase in the reserve for bad debts, and a $263,000 favorable permanent difference from the receipt of life insurance proceeds. a. Compute Hafnaoui Company's current income tax expense.
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