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What amount should be reported as current tax expense for the current year?   a. 2,250,000 b. 1,950,000 c. 1,050,000 d. 1,350,000 2. What amount should be reported as total income tax expense?  a. 1,350,000 b. 1,950,000 c. 1,050,000 d. 2,250,000 3. What amount of income tax payable should be presented at year end?

What amount should be reported as current tax expense for the current year?   a. 2,250,000 b. 1,950,000 c. 1,050,000 d. 1,350,000 2. What amount should be reported as total income tax expense?  a. 1,350,000 b. 1,950,000 c. 1,050,000 d. 2,250,000 3. What amount of income tax payable should be presented at year end?

FINANCIAL ACCOUNTING
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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For the year ended December 31, year 1, Tyre Co. reported pretax financial statement income of $7,500,000. Its taxable income was $6,500,000. The difference is due to accelerated depreciation for income tax purposes. Tyre's effective income tax rate is 30%, and Tyre made estimated tax payments during year 1 of $900,000.

1. What amount should be reported as current tax expense for the current year? 

 a. 2,250,000
b. 1,950,000
c. 1,050,000
d. 1,350,000

2. What amount should be reported as total income tax expense? 

a. 1,350,000
b. 1,950,000
c. 1,050,000
d. 2,250,000

3. What amount of income tax payable should be presented at year end?

a.  2,250,000
b. 1,350,000
c. 1,950,000
d. 1,050,000
 
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