Relix, Inc., is a domestic corporation with the following temporary timing differences for the current year.

The building depreciation for tax purposes exceeds book depreciation by $13,000.

The furniture and fixtures depreciation for tax purposes exceeds book depreciation by $3,800.

The accrued litigation expenses in the amount of $16,000 are deductible for book purposes but not yet deductible for tax.

In addition to the temporary differences above, Relix, Inc., reported two permanent differences between book and taxable income. It earned $2,375 in tax-exempt municipal bond interest, and it incurred $780 in nondeductible meals and entertainment expense. Relix's book income before tax is $4,800. Assume a 34% corporate tax rate and no valuation allowance.

Compute the Relix's current income tax expense.

Answer rating: 100% (QA)

Relix Inc Current Income Tax Calculation Total Taxable Income as per Books of Acs Add Disallowances ... View the full answer