Grand Corporation reported pretax book income of $627.500. Tax depreciation exceeded book depreciation by $490,000. In addition, the company received $290,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $61,000. Compute the company's current and deferred income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.)
Grand Corporation reported pretax book income of $627.500. Tax depreciation exceeded book depreciation by $490,000. In addition, the company received $290,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $61,000. Compute the company's current and deferred income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.)
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 56P
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![Grand Corporation reported pretax book income of $627,500. Tax depreciation exceeded book depreciation by $490,000.
In addition, the company received $290,000 of tax-exempt municipal bond interest. The company's prior-year tax return
showed taxable income of $61,000. Compute the company's current and deferred income tax expense or benefit. (Leave
no answer blank. Enter N/A or zero.)
Current income tax
Deferred income tax](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F846a4c06-9dfd-4997-9ae8-1da449f52c1e%2F76a1c443-1af5-4e91-b5c9-2fc55a67c66e%2F7lz8vpc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Grand Corporation reported pretax book income of $627,500. Tax depreciation exceeded book depreciation by $490,000.
In addition, the company received $290,000 of tax-exempt municipal bond interest. The company's prior-year tax return
showed taxable income of $61,000. Compute the company's current and deferred income tax expense or benefit. (Leave
no answer blank. Enter N/A or zero.)
Current income tax
Deferred income tax
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