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Grand Corporation reported pretax book income of $609,000. Tax depreciation exceeded book depreciation by $406,000. In ad the company received $304,500 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable inco of $50,750. Compute the company's current income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.) Answer is complete but not entirely correct. Current income tax Deferred income tax ΝΑ benefit 00 $ (10,658)

Grand Corporation reported pretax book income of $609,000. Tax depreciation exceeded book depreciation by $406,000. In ad the company received $304,500 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable inco of $50,750. Compute the company's current income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.) Answer is complete but not entirely correct. Current income tax Deferred income tax ΝΑ benefit 00 $ (10,658)

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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Grand Corporation reported pretax book income of $609,000. Tax depreciation exceeded book depreciation by $406,000. In addition, the company received $304,500 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $50,750. Compute the company's current income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.) Answer is complete but not entirely correct. S 00 Current income tax Deferred income tax NA benefit $(10,658)
Transcribed Image Text:Grand Corporation reported pretax book income of $609,000. Tax depreciation exceeded book depreciation by $406,000. In addition, the company received $304,500 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $50,750. Compute the company's current income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.) Answer is complete but not entirely correct. S 00 Current income tax Deferred income tax NA benefit $(10,658)
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