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Grand Corporation reported pretax book income of $720,000. Tax depreciation exceeded book depreciation by $440,000. In addition, the company received $350,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $58,000. Compute the company's current and deferred income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.) Current income tax N/A $ Deferred income tax expense $ 12,180

Grand Corporation reported pretax book income of $720,000. Tax depreciation exceeded book depreciation by $440,000. In addition, the company received $350,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $58,000. Compute the company's current and deferred income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.) Current income tax N/A $ Deferred income tax expense $ 12,180

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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Problem 17-43 (LO 17-2) (Algo) Grand Corporation reported pretax book income of $720,000. Tax depreciation exceeded book depreciation by $440,000. In addition, the company received $350,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $58,000. Compute the company's current and deferred income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.) Current income tax N/A $ Deferred income tax expense $ 12,180
Transcribed Image Text:Problem 17-43 (LO 17-2) (Algo) Grand Corporation reported pretax book income of $720,000. Tax depreciation exceeded book depreciation by $440,000. In addition, the company received $350,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $58,000. Compute the company's current and deferred income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.) Current income tax N/A $ Deferred income tax expense $ 12,180
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