Required information Problem 17-75 (LO 17-5) (Algo) [The following information applies to the questions displayed below) Randolph Company reported pretax net income from continuing operations of $970,500 and taxable income of $687,500. The book-tax difference of $283,000 was due to a $222.000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $144,000 due to an increase in the reserve for bad debts, and a $205,000 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 144,375 Check my work Required Information Problem 17-75 (LO 17-5) (Algo) [The following information applies to the questions displayed below.) Randolph Company reported pretax net income from continuing operations of $970,500 and taxable income of $687,500. The book-tax difference of $283,000 was due to a $222,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $144,000 due to an increase in the reserve for bad debts, and a $205,000 favorable permanent difference from the receipt of Ilfe Insurance proceeds. Problem 17-75 Part b (Algo) b. Compute Randolph Company's deferred income tax expense or benefit. . Check my work 0 Required Information Problem 17-75 (LO 17-5) (Algo) [The following information applies to the questions displayed below) Randolph Company reported pretax net income from continuing operations of $970,500 and taxable income of $687,500. The book-tax difference of $283,000 was due to a $222,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $144,000 due to an increase in the reserve for bad debts, and a $205,000 favorable permanent difference from the receipt of life Insurance proceeds. Problem 17-75 Part c (Algo) c. Compute Randolph Company's effective tax rate. (Round your answer to 2 decimal places.) cos Effective taxat Saved Help Save & Exit Submit Check my work Required information Problem 17-75 (LO 17-5) (Algo) (The following information applies to the questions displayed below) Randolph Company reported pretax net income from continuing operations of $970,500 and taxable income of $687,500. The book-tax difference of $283,000 was due to a $222,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $144,000 due to an increase in the reserve for bad debts, and a $205,000 favorable permanent difference from the receipt of life Insurance proceeds. Problem 17-75 Part d (Algo) d. Provide a reconciliation of Randolph Company's effective tax rate with its hypothetical tax rate of 21 percent. (Amounts to be deducted should be Indicated by a minus sign. Round your percentages to 2 decimal places.) ETR reconciliation (In 5) Income tax expense at 21% Income tax provision ETR reconciliation (in %) Hypothetical income tax rate 21:00 % Effective tax rate
