At the end of its first year of operations, ABC prepared the reconciliation of its book income and its taxable income for 2020 as presented below: Income before taxes $ 1,355,705 Less: Exempt Dividend Income (87426) Unearned rental income 158 254 Guarantee expense obligation 286 577 less: Additional depreciation in the payroll (844151) Taxable Income $ 868959 i. The unearned rental income corresponds to the collection of a 6-month rental that covers the period from January 1, 2021 to June 30, 2021. ii. In 2021, $ 429 865.5 was disbursed to comply with the company's guarantees. However, the estimated expense for guarantees in the Statement of Income and Expenses for 2021 was $ 257,919.3 iii. In 2021, the depreciation expense on the books is greater than the payroll by $ 128,532. The legislated tax rate (enacted tax rate) for the current period is 0.43. Congress has already drafted the bill to reduce the corporate tax rate to 0.28 effective next year. The project was approved shortly before the end of the second quarter of 2021. As of 12/31/2021, ABC's Statement of Financial Position will report a Net Deferred Tax Debt (DTL, net) for

a. 373652.37
b. 232469.94
c. 120131.76
d. 258424.93
e. 168276.70

Answer rating: 100% (QA)

The tax rate for the current period is 043 Ho... View the full answer