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Question 12 Sunland Corporation prepared the following reconciliation for its first year of operations: Pretax financial income for 2018 Tax exempt interest Originating temporary difference Taxable income $3000000 (156000) (462000) $2382000 The temporary difference will reverse evenly over the next 2 years at an enacted tax rate of 40%. The enacted tax rate for 201 income statement as the current portion of its provision for income taxes? 8 is 28%, what amount should be reported in its 2018 ○ $666960 O $952800 $840000 $1200000 Click if you would like to Show Work for this question: Open Show Work

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Answer #1

Provision for income tax is thhe estimated amount of tax which company expects to pay in the financial year after adjusting permanent and temporary timing difference.

Therefore, in 2018 amount to be reported in Financial Statement as provision for income tax is as below:-

2382000*.28= 666,960

That's all.

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