Exercise 14-18 (LO. 1, 3) Mini, Inc., earns pretax book net income of $750,000 in 2021, its first year of operations. Mini recognized $20,000 in bad debt expense for book purposes. This expense is not yet deductible for tax purposes. Mini reports no other temporary or permanent book-tax differences. The U.S. Federal corporate income tax rate is 21%, and Mini earns an after-tax rate of return on capital of 4%. Compute Mini's current income tax benefit or expense. 446,544 X
Exercise 14-18 (LO. 1, 3) Mini, Inc., earns pretax book net income of $750,000 in 2021, its first year of operations. Mini recognized $20,000 in bad debt expense for book purposes. This expense is not yet deductible for tax purposes. Mini reports no other temporary or permanent book-tax differences. The U.S. Federal corporate income tax rate is 21%, and Mini earns an after-tax rate of return on capital of 4%. Compute Mini's current income tax benefit or expense. 446,544 X
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 12P
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