Smith Company reported $350,000 in book income before income tax during 20X1, its first year of operation. The tax depreciation exceeded its book depreciation by $30,000. The tax rate for 20X1 and all future years was 21%.

If Smith paid no estimated taxes, what amount of income tax payable should Smith report in its December 31, 20X1, balance sheet?

Multiple Choice

• $67,200
• $73,500
• $52,500
• $79,800

Smith Company reported $350,000 in book income before income tax during 20X1, its first year of operation. The tax depreciation exceeded its book depreciation by $30,000. The tax rate for 20X1 and all future years was 21%.

Income tax expense reported in the income statement for the year ending December 31, 20X1 would be:

Multiple Choice

• $79,800.
• $73,500.
• $52,500.
• $67,200.