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Please show work.... 42. [LO 2] Cass Corporation reported pretax book income of $10,000,000. During the current year, the reserve for bad debts increased by

Please show work....

42. [LO 2] Cass Corporation reported pretax book income of $10,000,000. During the current year, the reserve for bad debts increased by $100,000. In addition, tax depreciation exceeded book depreciation by $200,000. Cass Corporation sold a fixed asset and reported book gain of $50,000 and tax gain of $75,000. Finally, the company received $250,000 of tax-exempt life insurance proceeds from the death of one of its officers. Assuming a tax rate of 34%.

Compute the companys current income tax expense for federal income tax purposes.

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