Question
Required information [The following information applies to the questions displayed below.] Randolph Company reported pretax net income from continuing operations of $1,103,500 and taxable income
Required information [The following information applies to the questions displayed below.]
Randolph Company reported pretax net income from continuing operations of $1,103,500 and taxable income of $667,500. The book-tax difference of $436,000 was due to a $250,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $106,000 due to an increase in the reserve for bad debts, and a $292,000 favorable permanent difference from the receipt of life insurance proceeds.
a. Compute Randolph Companys current income tax expense.
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