aramel Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2021: Book income before income taxes 2,700,000.00 Add temporary
aramel Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2021: Book income before income taxes 2,700,000.00 Add temporary
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
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Caramel Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2021:
Book income before income taxes | 2,700,000.00 |
Add temporary difference | |
Installment revenue which will reverse in 2022 |
240,000.00 |
Deduct temporary difference | |
Depreciation expense which will reverse in equal amounts in each of the next four years | (960,000.00) |
Taxable income |
1,980,000.00 |
Caramel Corp effective income tax rate is 25% for 2021. What amount should Caramel Corp report in its 2021 income statement as the current provision for income tax expense?
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