Question
Wildhorse Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2018: Book income before
Wildhorse Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2018:
Book income before income taxes $2670000
Add temporary differenceConstruction contract revenue which will reverse in 2019 237000
Deduct temporary differenceDepreciation expense
which will reverse in equal amounts ineach of the next four years (952800)
Taxable income $1954200
Wildhorse's effective income tax rate is 30% for 2018. What amount should Wildhorse report in its 2018 income statement as the current provision for income taxes?
$71100
$586260
$872100
$801000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started