28. LO.1, 3, 4 Willingham, Inc., an accrual basis C corporation, reports pretax book income of $1,600,000.
Question:
28. LO.1, 3, 4 Willingham, Inc., an accrual basis C corporation, reports pretax book income of $1,600,000. At the beginning of the year, Willingham reported no deferred tax assets or liabilities on its balance sheet. At the end of the year, Willingham’s depreciable assets had a net book value of $15,000,000. It is subject to a 21% U.S. income tax rate in the current year and for the foreseeable future.
Willingham’s book-tax differences include the following. Compute the entity’s current and deferred Federal income tax expense for the year.
Estimate of uncollectible accounts at year end $4,000,000 Tax depreciation in excess of book 3,000,000 Book gain from installment sale of nonbusiness asset, deferred for tax 2,000,000 Interest income from school district bonds 200,000
Step by Step Answer:
Essentials Of Taxation Individuals And Business Entities
ISBN: 233160
1st Edition
Authors: Nellen/Young/Raabe/Maloney