Watson Corporation prepared the following reconciliation for its first year of operations: Pretax financial income for 2015
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Question:
Watson Corporation prepared the following reconciliation for its first year of operations: | |
Pretax financial income for 2015 | 1,800,000 |
Tax exempt interest | (100,000) |
Originating temporary difference | (300,000) |
Taxable income | 1,400,000 |
The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 2015 is 28%. What amount should be reported in its 2015 income statement as the current portion of its provision for income taxes? |
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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