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Hafnaoui Company reported pretax net income from continuing operations of $903,500 and taxable income of $ 712,500. The book-tax difference of $191,000 was due to a $242, 000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $117,000 due to an increase in the reserve for bad debts, and a $ 66,000 favorable permanent difference from the receipt of life insurance proceeds. The question is "compute Hafnaour Company's deffered income tax expense or benefit

Hafnaoui Company reported pretax net income from continuing operations of $903,500 and taxable income of $ 712,500. The book-tax difference of $191,000 was due to a $242, 000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $117,000 due to an increase in the reserve for bad debts, and a $ 66,000 favorable permanent difference from the receipt of life insurance proceeds. The question is "compute Hafnaour Company's deffered income tax expense or benefit

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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Hafnaoui Company reported pretax net income from continuing operations of $903,500 and taxable income of $ 712,500. The book-tax difference of $191,000 was due to a $242,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $117,000 due to an increase in the reserve for bad debts, and a $ 66,000 favorable permanent difference from the receipt of life insurance proceeds. The question is "compute Hafnaour Company's deffered income tax expense or benefit
Transcribed Image Text:Hafnaoui Company reported pretax net income from continuing operations of $903,500 and taxable income of $ 712,500. The book-tax difference of $191,000 was due to a $242,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $117,000 due to an increase in the reserve for bad debts, and a $ 66,000 favorable permanent difference from the receipt of life insurance proceeds. The question is "compute Hafnaour Company's deffered income tax expense or benefit
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