Answered: What amount should be reported as…

What amount should be reported as current provision for income tax or current tax expense for the current year? A. 225,000 B. 270,000 C. 230,000 D. 220,000

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

A company reported in the income statement for the current year 900,000 income before provision for income tax.

Please consider the following information:

Rent income received in advance 150,000
Interest income on time deposit 200,000
Depreciation deducted for income tax purposes in excess of financial depreciation 100,000
Income tax rate 30%

What amount should be reported as current provision for income tax or current tax expense for the current year?

A. 225,000
B. 270,000
C. 230,000
D. 220,000

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