Question: Prance Inc earns pretax book net income of 800 000 in
Prance, Inc., earns pretax book net income of $800,000 in 2014. Prance acquires a depreciable asset in 2014, and first-year tax depreciation exceeds book depreciation by $80,000. Prance reported no other temporary or permanent book-tax differences. Assuming that the pertinent U.S. tax rate is 35%, compute Prance's total income tax expense, current income tax expense, and deferred income tax expense.
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