Tuna Corporation reported pretax book income of $1,013,000. During the current year, the net reserve for warranties increased by $31,500. In addition, book depreciation exceeded tax depreciation by $113,000. Finally, Tuna subtracted a dividends received deduction of $21,500 in computing its current-year taxable income. Book equivalent of taxable income is:

Multiple Choice

• $1,136,000.

• $1,157,500.

• $991,500.

• $1,034,500.

Costello Corporation reported pretax book income of $500,000. During the current year, the reserve for bad debts increased by $5,000. In addition, tax depreciation exceeded book depreciation by $40,000. Finally, Costello received $3,000 of tax-exempt life insurance proceeds from the death of one of its officers. Costello's deferred income tax expense or benefit would be:

Multiple Choice

• $7,980 net deferred tax expense.

• $7,950 net deferred tax benefit.

• $7,350 net deferred tax expense.

• $7,350 net deferred tax benefit.

Grand River Corporation reported pretax book income of $680,000. Included in the computation were favorable temporary differences of $190,000, unfavorable temporary differences of $154,000, and favorable permanent differences of $188,000. The corporation's current income tax expense or benefit would be:

Multiple Choice

• $142,800 tax benefit.

• $95,760 tax expense.

• $135,240 tax benefit.

• $167,580 tax expense.