A company prepared the following reconciliation for 2021: Pretax financial income for 2021 $719,000 Originating temporary difference 19,000 Permanent difference (38,000) Taxable income $xxxx (Figure this amount out on your own. Note: the parentheses outside the permanent difference mean subtraction). The temporary difference will reverse evenly over the next two years (i.e., 2022 and 2023). The enacted income tax rates are 35% for 2021 and 2022, and 30% for 2023. Compute the company’s income tax expense for 2021.
A company prepared the following reconciliation for 2021:
Pretax financial income for 2021 $719,000
Originating temporary difference 19,000
Permanent difference (38,000)
Taxable income $xxxx (Figure this amount out on your own.
Note: the parentheses outside
the permanent difference mean
subtraction).
The temporary difference will reverse evenly over the next two years (i.e., 2022 and 2023). The enacted income tax rates are 35% for 2021 and 2022, and 30% for 2023.
Compute the company’s income tax expense for 2021.
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