Charlie Corporation 

$($the Company$)$ prepares its financial statements in accordance with US GAAP and files its C Corporation income tax return on an accrual basis using a calendar year end. The Company files a South Carolina tax return, where the corporate tax rate is $8\%$ and a federal return where the rate is $21\%.$ The Company$$s $2022$ trial balance follows.

Additional Information

$$ The Company$$s $2022$ tax depreciation totaled $$500,000.$

Required

$$ Compute the Company$$s total $($current and deferred$)$ income tax expense for $2022.$

$$ Compute the Company$$s effective income tax rate.

$$ Reconcile the Company$$s statutory rate $(21\%)$ to its effective income tax rate.

Answer rating: 100% (QA)

To calculate Charlie Corporations total income tax expense for 2022 and its effective income tax rat... View the full answer