Didde Corp. prepared the following reconciliation of income per books with income per tax return for...
Didde Corp. prepared the following reconciliation of income per
books with income per tax return for the year ended December 31,
2017:
Book income before income
taxes
$1,500,000
Add temporary
difference
Construction contract
revenue which was reversed in
2018
$160,000
Deduct temporary difference
Depreciation expense
which will reverse in equal amounts in
each of the next four
years
($640,000)
Taxable
income $1,020,000
Didde's effective income tax rate was 34% for 2017. What amount
should Didde have reported in its 2017 income statement as the
current provision for income taxes?
| $54,400 |
| $346,800 |
| $510,000 |
| $564,400 |
Homework Answers
Taxable income = $1,020,000
Current provision Tax on such taxable income = 1,020,000*34%
=346,800
The answer is b)
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Didde Corp. prepared the following reconciliation of income per
books with income per tax return for...
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