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Randolph Company reported pretax net income from continuing operations of $889,500 and taxable income of $587,500 The book-tax difference of $302,000 was due to a
Randolph Company reported pretax net income from continuing operations of $889,500 and taxable income of $587,500 The book-tax difference of $302,000 was due to a $229,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $130,000 due to an increase in the reserve for bad debts, and a $203,000 favorable permanent difference from the receipt of life insurance proceeds. Problem 17-75 Part a (Algo) a. Compute Randolph Company's current income tax expense. Current income tax expense b. Compute Randolph Company's deferred income tax expense or benefit. c. Compute Randolph Company's effective tax rate. (Round your answer to 2 decimal places.) Effective tax rate % Randolph Company reported pretax net income from continuing operations of $889,500 and taxable income of $587,500 The book-tax difference of $302,000 was due to a $229,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $130,000 due to an increase in the reserve for bad debts, and a $203,000 favorable permanent difference from the receipt of life insurance proceeds. Problem 17-75 Part a (Algo) a. Compute Randolph Company's current income tax expense. Current income tax expense b. Compute Randolph Company's deferred income tax expense or benefit. c. Compute Randolph Company's effective tax rate. (Round your answer to 2 decimal places.) Effective tax rate %
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