Answer:
The corporation's current income tax expense or benefit would be $86,940.
Note: The Internal Revenue Service (IRS) 2019 tax rate of 21% for corporation is used since the tax rate is not given in the question.
Explanation:
Details Amount ($)
Pretax book income 620,000
Favorable temporary differences (160,000)
Unfavorable temporary differences 106,000
Favorable permanent differences <u> (152,000) </u>
Adjusted income 414,000
Tax expenses (at 21%) <u> (86,940) </u>
Profit after tax <u> 327,060 </u>
Therefore, the corporation's current income tax expense or benefit would be $86,940.
Note: The Internal Revenue Service (IRS) 2019 tax rate of 21% for corporation is used since the tax rate is not given in the question.
