Packer Co.s 2015 income statement reported $130,000 in income before provisions for income taxes. To compute the provision for federal income taxes, the following 2015 data are provided:

Rent received in advance	$22,000
Income from exempt municipal bonds	$17,000
Depreciation deducted for income tax purposes	$18,000
Depreciation deducted for financial purposes	$10,000

If the alternative minimum tax provisions are ignored, what amount should Packer report as taxable income?

a. $125,000

b. $117,000

c. $127,000

d. $130,000

Which of the following items should affect current income tax expense for 20X11?

a. Change in income tax rate for 20X12.

b. Interest on a 20X9 tax deficiency paid in 20X11.

c. Change in income tax rate for 20X11.

d. Penalty on a 20X9 tax deficiency paid in 20X11.