Question
The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars): Pretax accounting income: $ 507 Pretax accounting
The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars):
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Pretax accounting income: | $ | 507 |
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Pretax accounting income included: |
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Overweight fines (not deductible for tax purposes) |
| 5 |
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Depreciation expense |
| 100 |
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Depreciation in the tax return |
| 260 |
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The applicable tax rate is 25%. There are no other temporary or permanent differences.
Which of the following must Franklin Freightways disclose related to the income tax expense reported in the income statement ($ in millions)?
Multiple Choice
Both the current portion of the tax expense of $88 and the deferred portion of the tax expense of $40.
Only the total tax expense of $200.
None of these answer choices are correct.
Only the current portion of tax expense of $160
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