Question
Relix, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year before recording any
Relix, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year before recording any net deferred tax asset or net deferred tax liability.
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The partial beginning of the year tax and book balance sheet information is provided below.
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In addition to the temporary differences above, Relix, Inc., reported two permanent differences between book and taxable income. It earned $2,375 in tax-exempt municipal bond interest, and it incurred $780 in nondeductible business meals expense. Relix's book income before tax is $4,800. Assume a 21% Federal corporate tax rate and no valuation allowance. With this additional information, calculate Relix's current tax expense.
Compute Relix's current tax expense.
If required, round your answers to the nearest dollar.
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