Horizon Manufacturing reported a pretax book income of $1,800,000. The following temporary and permanent differences were included in the computation: ⚫ Favorable temporary differences: $320,000 ⚫ Unfavorable temporary differences: $180,000 ⚫ Favorable permanent differences: $150,000 ⚫ Unfavorable permanent differences: $70,000 Assuming a tax rate of 25%, compute the company's current income tax expense.
Horizon Manufacturing reported a pretax book income of $1,800,000. The following temporary and permanent differences were included in the computation: ⚫ Favorable temporary differences: $320,000 ⚫ Unfavorable temporary differences: $180,000 ⚫ Favorable permanent differences: $150,000 ⚫ Unfavorable permanent differences: $70,000 Assuming a tax rate of 25%, compute the company's current income tax expense.
Chapter22: S Corporations
Section: Chapter Questions
Problem 16CE
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Transcribed Image Text:Horizon Manufacturing reported a pretax book income of $1,800,000. The
following temporary and permanent differences were included in the
computation:
⚫ Favorable temporary differences: $320,000
⚫ Unfavorable temporary differences: $180,000
⚫ Favorable permanent differences: $150,000
⚫ Unfavorable permanent differences: $70,000
Assuming a tax rate of 25%, compute the company's current income tax
expense.
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