Diddle Corp. prepared the following reconciliation of income per books with income per tax return for the
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Question:
Book income before income taxes $1,200,000.
Add temporary difference
Construction contract revenue which will be reverse
in 2012 160,000.
Deduct temporary difference
Depreciation expense which will reverse in equal
amounts in each of the next four years (640,000.)
Taxable income $720,000.
======== =
Didde's effective income tax rate is 34% for 2011. What amount should Didde report in its 2011 income statement as the current provision for income taxes?
a) $54,400.
b) $244,800.
c) $408,000.
d) $462,400.
Related Book For
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers
Posted Date: