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Last Minute Luggage, Inc. (LML) is a new client for calendar year 2020. LML began business in the previous year, calendar year 2019. LML's business
Last Minute Luggage, Inc. (LML) is a new client for calendar year 2020. LML began business in the previous year, calendar year 2019. LML's business operations are centered on packaging and distributing TSA approved locks, gifts, beverages, gels, and lotions to airports. For the current year assume that LML has no temporary differences. Yesterday, we were out in the field at the client's headquarters and gathered the following information for calendar year 2020: Meal costs were $250,000 Lobbying costs were $50,000 We also noted in the GL: Calendar year 2020 income before taxes is $30 million Based upon our discussions with the client and our review of the client's information, we concluded we have all the information needed to prepare a materially correct tax provision. Directions Based on the facts above, complete the calendar year 2020 ASC 740 current income tax expense for Last Minute Luggage. Use a 21% federal tax rate
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