Packard Corporation reported pretax book income of $500,000. Included in the computation were favorable temporary differences of $10,000, unfavorable temporary differences of $100,000, and unfavorable permanent differences of $80,000. The corporation's current income tax expense or benefit would be:

Question

Lilliana Carlson

Business

2 May, 09:59

Packard Corporation reported pretax book income of $500,000. Included in the computation were favorable temporary differences of $10,000, unfavorable temporary differences of $100,000, and unfavorable permanent differences of $80,000. The corporation's current income tax expense or benefit would be:

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Answers (1)

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Wallace · Answer 1

The corporation's current income tax expense or benefit would be $170100.

Explanation:

income tax expense or benefit = $500,000 + $100,000 - $10,000 - $80,000) * 21%

= $107,100

Therefore, the corporation's current income tax expense or benefit would be $170100.