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14 June, 09:38

Woodward Corporation reported pretax book income of $1,417,500. Included in the computation were favorable temporary differences of $300,000, unfavorable temporary differences of $106,500, and favorable permanent differences of $192,000. Assuming a tax rate of 34 percent, compute the company's current income tax expense or benefit. (Amounts to be deducted should be indicated by a minus sign.)

Pre-tax book income

Favorable temporary differences

Unfavorable temporary differences

Favorable permanent differences

Taxable income

Tax rate%

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  1. 14 June, 09:53
    0
    The company's current income tax expense or benefit is $350,880.

    Explanation:

    Pre-tax book income $ 1417500

    Favorable temporary differences - $300000

    Unfavorable temporary differences $106500

    Favorable permanent differences - $192000

    Taxable income $1032000

    Current income tax expense ($1032000 x 34%) $350880

    Therefore, The company's current income tax expense or benefit is $350,880.
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