Mini, in Problem 17, reports $800,000 of pretax book net income in 2022. For that year, Mini did not recognize any bad debt expense for book purposes but did deduct $15,000 in bad debt expense for tax purposes. Mini reports no other temporary or permanent differences. Assuming that the U.S. tax rate is 21%, compute Mini’s current income tax benefit or expense. 

Data in Problem 17

Mini, Inc., earns pretax book net income of $750,000 in 2021. Mini recognized $20,000 in bad debt expense for book purposes. This expense is not yet deductible for tax purposes. Mini reports no other temporary or permanent booktax differences. The applicable U.S. tax rate is 21%, and Mini earns an after-tax rate of return on capital of 4%. Compute Mini’s current income tax benefit or expense.