Harrison Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In...

Question

Question

Harrison Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In add

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Deferred income tax expense	($73,500)


Pre Tax Book Income	$600,000
Excess tax depreciation	($400,000)
Tax-exempt interest income	($300,000)
Net operating loss	($100,000)
NOL carryback to prior year	$50,000
	21%
Current income tax refundable	$10,500

Excess tax depreciation	($400,000)
NOL carry over to the next year	$50,000
Net increase in favorable temporary differences	($350,000)
	21%
Net increase in deferred income tax liability	($73,500)

Add a comment

Answer 2

Similar Homework Help Questions

Harrison Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In...

Harrison Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In addition, the company received $300,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $50,000. Compute the company's deferred income tax expense or benefit. Deferred income tax expense
Grand Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In...

Grand Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In addition, the company received $300,000 of tax-exempt municipal bond interest. The company’s prior-year tax return showed taxable income of $50,000. Compute the company's current or deferred income tax expense or benefit. Deferred income tax benefit:
Grand Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In...

Grand Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In addition, the company received $300,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $50,000. Compute the company's current or deferred income tax expense or benefit. Answer is complete but not entirely correct. Deferred income tax benefit $ 10,500

Burcham Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In...

Burcham Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In addition, the company received $300,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $50,000. Compute the company's book equivalent of taxable income. Use this number to compute the company's total income tax provision or benefit. Book equivalent of taxable income Total income tax provision or benefit
Harrison Corporation reported pretax book income of $732,500. Tax depreciation exceeded book depreciation by $630,000. In...

Harrison Corporation reported pretax book income of $732,500. Tax depreciation exceeded book depreciation by $630,000. In addition, the company received $232,000 of tax exempt municipal bond interest. The company's prior year tax return showed taxable income of $49,000. Compute the company's deferred income tax expense or benefit. Deferred Income tax expense
Harrison Corporation reported pretax book income of $807,500. Tax depreciation exceeded book depreciation by $690,000. In...

Harrison Corporation reported pretax book income of $807,500. Tax depreciation exceeded book depreciation by $690,000. In addition, the company received $160,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $36,000. Compute the company's deferred income tax expense or benefit. E Deferred income tax benefit Deferred income tax benefit Deferred income tax expense

Harrison Corporation reported pretax book income of $825,000. Tax depreciation exceeded book depreciation by $560,000. In...

Harrison Corporation reported pretax book income of $825,000. Tax depreciation exceeded book depreciation by $560,000. In addition, the company received $315,000 of tax-exempt municipal bond interest. The company’s prior-year tax return showed taxable income of $25,000. Assuming a tax rate of 21 percent, compute the company’s deferred income tax expense or benefit.
Grand Corporation reported pretax book income of $672,500. Tax depreciation exceeded book depreciation by $550,000. In...

Grand Corporation reported pretax book income of $672,500. Tax depreciation exceeded book depreciation by $550,000. In addition, the company received $210,000 of tax-exempt municipal bond interest. The company’s prior-year tax return showed taxable income of $55,000. Compute the company's current or deferred income tax expense or benefit.
Grand Corporation reported pretax book income of $752,500. Tax depreciation exceeded book depreciation by $620,000. In...

Grand Corporation reported pretax book income of $752,500. Tax depreciation exceeded book depreciation by $620,000. In addition, E the company received $320,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income E of $117,000. Compute the company's current or deferred income tax expense or benefit. & Answer is complete but not entirely correct. Deferred income tax benefit $ 14,805

Harrison Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In...

Homework Answers