Mini, in Problem 18, reports $800,000 of pretax book net income in 2021. 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 expense.

Data from Problem 18

Mini, Inc., earns pretax book net income of $750,000 in 2020, its first year of operations. 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 differences. The applicable U.S. tax rate is 21%, and Mini earns an aftertax rate of return on capital of 8%. Compute Mini’s current income tax expense.