In 2020, when the enacted tax rate for the current and all future periods was 20.5%, Garza Corp. had a taxable loss of $479,000 and elected to use the net operating loss carryforward provision. In 2021, the tax rate changed to 23.0% for the current and all future periods, and Garza reported taxable income of $274,000. In 2022, Garza reported taxable income of $461,000. Garza has no book-tax differences. What amount will Garza report as current income tax expense on its 2022 income statement?

In 2020, when the enacted tax rate for the current and all future periods was 20.5%, Garza Corp. had a taxable loss of $479,000 and elected to use the net operating loss carryforward provision. In 2021, the tax rate changed to 23.0% for the current and all future periods, and Garza reported taxable income of $274,000. In 2022, Garza reported taxable income of $461,000. Garza has no book-tax differences. What amount will Garza report as current income tax expense on its 2022 income statement?

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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