Question 1

Pharoah Corporation prepared the following reconciliation for its first year of operations:

Pretax financial income for 2018	$2900000
Tax exempt interest	(154000)
Originating temporary difference	(458000)
Taxable income	$2288000

The temporary difference will reverse evenly over the next 2 years at an enacted tax rate of 40%. The enacted tax rate for 2018 is 28%. What amount should be reported in its 2018 income statement as the current portion of its provision for income taxes?

(pick one)

$915200

$640640

$812000

$1160000