Harrison Corporation reported a pretax book income of $425,000. Tax depreciation exceeded book depreciation by $410,000. In addition, the company received $165,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed a taxable income of $103,000. Assuming a tax rate of 34%, compute the company's deferred income tax expense or benefit.

Harrison Corporation reported a pretax book income of $425,000. Tax depreciation exceeded book depreciation by $410,000. In addition, the company received $165,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed a taxable income of $103,000. Assuming a tax rate of 34%, compute the company's deferred income tax expense or benefit.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 24CE

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