Advanced Accounting (Looseleaf)
Advanced Accounting (Looseleaf)
12th Edition
ISBN: 9780077632595
Author: Hoyle
Publisher: MCG
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Chapter 6, Problem 13Q
To determine

Explain when is this alternative approach required for computing EPS.

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Vanessa Enterprises reported pretax book income of $620,800. Included in the computation were favorable temporary differences of $15,500, unfavorable temporary differences of $88,200, and unfavorable permanent differences of $72,400. Assuming a tax rate of 35%, the Corporation's current income tax expense or benefit would be_. a. $225,304 b. $224,000 c. $221,000 d. $217,280
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