Grand Corporation reported pretax book income of $627,000. Tax depreciation exceeded book depreciation by $418,000. In addition, the company received $313,500 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $52,250. Grand's beginning book (tax) basis in its fixed assets was $2,045,000 ($1,836,000) and its ending book (tax) basis is $2,545,000 ($1,927,000). Compute the company's current income tax expense or benefit. Note: Leave no answer blank. Enter N/A or zero. > Answer is complete but not entirely correct. Current income tax Deferred income tax N/A $ 0 expense $ 85,170 x
Grand Corporation reported pretax book income of $627,000. Tax depreciation exceeded book depreciation by $418,000. In addition, the company received $313,500 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $52,250. Grand's beginning book (tax) basis in its fixed assets was $2,045,000 ($1,836,000) and its ending book (tax) basis is $2,545,000 ($1,927,000). Compute the company's current income tax expense or benefit. Note: Leave no answer blank. Enter N/A or zero. > Answer is complete but not entirely correct. Current income tax Deferred income tax N/A $ 0 expense $ 85,170 x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer must must be correct or i will give down vote
Transcribed Image Text:Grand Corporation reported pretax book income of $627,000. Tax depreciation
exceeded book depreciation by $418,000. In addition, the company received
$313,500 of tax-exempt municipal bond interest. The company's prior-year tax return
showed taxable income of $52,250. Grand's beginning book (tax) basis in its fixed
assets was $2,045,000 ($1,836,000) and its ending book (tax) basis is $2,545,000
($1,927,000). Compute the company's current income tax expense or benefit.
Note: Leave no answer blank. Enter N/A or zero.
> Answer is complete but not entirely correct.
Current income tax
Deferred income tax
N/A
$
0
expense
$
85,170 x
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