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Harrison Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In addition, the company received $300,000 of tax-exempt municipal bond
Harrison Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In addition, the company received $300,000 of tax-exempt municipal bond interest. The companys prior-year tax return showed a taxable income of $50,000. Assuming a tax rate of 21 percent, compute the companys deferred income tax expense or benefit. Assume CARES Act applies.
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