Question

Information for Chatfield Inc. for the year 2018: Reconciliation of pretax accounting income and taxable income: Pretax accounting income$179,700 Permanent differences (14,200) 165,500 Temporary difference-depreciation (10,500) Taxable income$155,000 Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2017$11,900 As of December 31, 2018$22,400 The enacted tax rate was 27% for 2017 and thereafter. What should Chatfield report as the current portion of its income tax expense in the year 2018

Answer 1

Answer:

Chatfield will report $41850 as its income tax rate

Explanation:

Given Data;

Pretax accounting income$179,700

Taxable income$155,000

Tax rate = 27%

Given a taxable income pf $155,000 and a tax rate of 27%, Chatfield income tax expenses in 2018 will be;

$155,000 * 27%

= $155,000 * 0.27

= $41,850

Answer 2

Answer:

$41,850

Explanation:

Chatfield report as the current portion of its income tax expense in the year 2018

Taxable income X Tax Rate for 2018

$155,000 X 27% = $41,850