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Kemp Corporations income statement for the year ended December 31, year 7, shows pretax income of $500,000. The following items are treated differently on the
Kemp Corporations income statement for the year ended December 31, year 7, shows pretax income of $500,000. The following items are treated differently on the tax return and on the accounting records.
Tax Return Accounting Records
Rent income $ 35,000 $ 60,000
Depreciation expense 140,000 110,000
Premium on officer's life insurance none 45,000
Kemps tax rate for year 7 is 40%. What is the current portion of Kemps total income tax expense for year 7? $218,000
$200,000
$196,000
$178,000
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