Question 28 10 pts Purple Rose Corporation reported pretax book income of $720,000. Tax depreciation exceeded book depreciation by $50,000 and the reserve for bad debt was decreased by $5,000. In addition, the company received $120,000 of tax-exempt life insurance proceeds and incurred $11,000 in nondeductible meals and entertainment expenses which are included in book income. The prior year tax return showed taxable income of $200,000. a. Compute Purple Rose's current income tax expense or benefit. b. Compute Purple Rose's deferred income tax expense or benefit. Previous Next