Mini, in Problem 17, reports $800,000 of pretax book net income in 2022. For that year, Mini

Question:

Mini, in Problem 17, reports $800,000 of pretax book net income in 2022. 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 benefit or expense. 


Data in Problem 17

Mini, Inc., earns pretax book net income of $750,000 in 2021. 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 booktax differences. The applicable U.S. tax rate is 21%, and Mini earns an after-tax rate of return on capital of 4%. Compute Mini’s current income tax benefit or expense.

Fantastic news! We've located the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

South Western Federal Taxation 2023 Essentials Of Taxation Individuals And Business Entities

ISBN: 9780357720103

26th Edition

Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young

Question Posted: