Cardinal Corporation reported pretax book income of $3.300.000 During the curent year, the reserve for bad debts increased by $100.000. In addition, tax depreciation exceeded book depreciation by $200,000. Cardinal sold a foxed asset and reported a book gain of $10,000 and tax gain of $45,000. Cardinal had a net deferred tax asset of $12,600 at the beginning of the year. representing a balance of $60,000 of net temporary unfavorable differences a. Compute Cardinal's current income tax expense or benefit. b. Compute Cardinal's deferred income tax expense or benefit.

Cardinal Corporation reported pretax book income of $3.300.000 During the curent year, the reserve for bad debts increased by $100.000. In addition, tax depreciation exceeded book depreciation by $200,000. Cardinal sold a foxed asset and reported a book gain of $10,000 and tax gain of $45,000. Cardinal had a net deferred tax asset of $12,600 at the beginning of the year. representing a balance of $60,000 of net temporary unfavorable differences a. Compute Cardinal's current income tax expense or benefit. b. Compute Cardinal's deferred income tax expense or benefit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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