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QUESTION 5 Shaw Corporation reported pre-tax book income of $1,000,000. Included in the computation were favorable temporary differences of $180,000, unfavorable temporary differences of
QUESTION 5 Shaw Corporation reported pre-tax book income of $1,000,000. Included in the computation were favorable temporary differences of $180,000, unfavorable temporary differences of $50,000, and favorable permanent differences of $100,000. Assuming a tax rate of 21%, compute the company's deferred income tax expense or benefit. (Enter as a negative). QUESTION 6 Shaw, Inc. reported pre-tax book income of $10,000,000. During the current year, the reserve for bad debts increased by $90,000. In addition, tax depreciation exceeded book depreciation by $210,000. Shaw, Inc. 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 21%, compute the company's deferred income tax expense or benefit. (Enter as a negative). 2 p 2 p
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