ABC Corp.'s 2021 income statement showed pretax accounting income of $2,800,000. To compute the federal income tax liability, the following 2021 data are provided:

Income from exempt municipal bonds $ 100,000

Depreciation deducted for tax purposes in excess of depreciation

deducted for financial statement purposes 300,000

Enacted corporate income tax rate 20%

What amount of current income tax liability should be reported in December 31,2021 balance sheet?

Answer rating: 100% (QA)

To compute ABC Corps current income tax liability we start with the pret... View the full answer