Blue Waters Corporation prepared the following reconciliation for its first year of operations: Pretax financial income for 2012 $1,200,000 Tax exempt interest (100,000) Originating temporary difference (300,000) Taxable income $800,000 The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 2012 is 28%. What amount should be reported in its 2012 income statement as the current portion of its provision for income taxes? Select one: a. $224,000 b. $320,000 c. $336,000 d. $480,000
Blue Waters Corporation prepared the following reconciliation for its first year of operations:
Pretax financial income for 2012 $1,200,000
Tax exempt interest (100,000)
Originating temporary difference (300,000)
Taxable income $800,000
The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 2012 is 28%. What amount should be reported in its 2012 income statement as the current portion of its provision for income taxes?
$224,000
$320,000
$336,000
$480,000
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