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Current income tax Deferred income tax benefit expense $ 413,490

Current income tax Deferred income tax benefit expense $ 413,490

FINANCIAL ACCOUNTING
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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Haresh G 

Grand Corporation reported pretax book income of $669,000. Tax depreciation exceeded book depreciation by $446,000. In addition, the company received $334,500 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $55,750. Grand's beginning book (tax) basis in its fixed assets was $2,115,000 ($1,892,000) and its ending book (tax) basis is $2,615,000 ($1,969,000). Compute the company's current income tax expense or benefit. Note: Leave no answer blank. Enter N/A or zero. Current income tax Deferred income tax benefit expense $ 413,490
Transcribed Image Text:Grand Corporation reported pretax book income of $669,000. Tax depreciation exceeded book depreciation by $446,000. In addition, the company received $334,500 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $55,750. Grand's beginning book (tax) basis in its fixed assets was $2,115,000 ($1,892,000) and its ending book (tax) basis is $2,615,000 ($1,969,000). Compute the company's current income tax expense or benefit. Note: Leave no answer blank. Enter N/A or zero. Current income tax Deferred income tax benefit expense $ 413,490
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