Problem 3-10 (LO. 2)

Cortez, Inc., reports $600,000 of pretax book net income in 2019. Cortezs book depreciation exceeds tax depreciation that year by $20,000. The corporation reports no other temporary or permanent book-tax differences. Cortezs pertinent U.S. tax rate is 21%, and Cortez earns an after-tax rate of return on capital of 8%.

For 2019, compute the following for Cortez, Inc.

a.	Current income tax expense	$
b.	Deferred income tax expense	$
c.	Total income tax expense	$

a. not 620,000, b. not 130,200, c. is 126,000