Angel Corporation reported pretax book income of $1,020,000. During the current year, thenet reserve for warranties increased by $28,000. In addition, tax depreciation exceededbook depreciation by $105,000. Finally, Angel subtracted a dividends received deductionof $29,000 in computing its current year taxable income. Angel's hypothetical tax expensein its reconciliation of its income tax expense is: Multiple Choiceо$214,200.$208,320.$198,030.$192,150.X

A hypothetical tax expense is an estimated or projected expense that a company may record on its…

Answered: Multiple Choice O $214,200. $208,320.…

Business

Accounting

Multiple Choice O $214,200. $208,320. $198,030.

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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Question

Angel Corporation reported pretax book income of $1,020,000. During the current year, the
net reserve for warranties increased by $28,000. In addition, tax depreciation exceeded
book depreciation by $105,000. Finally, Angel subtracted a dividends received deduction
of $29,000 in computing its current year taxable income. Angel's hypothetical tax expense
in its reconciliation of its income tax expense is:

Multiple Choice
о
$214,200.
$208,320.
$198,030.
$192,150.
X

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