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asambeis [7]
3 years ago
5

Cantlay, Inc., earns pretax book net income of $800,000 in 2019. Cantlay acquires a depreciable asset that year, and first-year

tax depreciation exceeds book depreciation by $80,000. Cantlay reported no other temporary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21% and Cantlay earns an after-tax rate of return on capital of 8%. What is Cantlay’s current income tax expense for the year?
Business
1 answer:
RideAnS [48]3 years ago
6 0

Answer:  $151,200

Explanation:

The Tax depreciation exceeds book depreciation so this excess will have to be removed from the income before tax is calculated as it is tax deductible.

Current Income Tax = (Pretax book income - Excess tax depreciation) * Income tax rate

= (800,000 - 80,000) * 21%

= $151,200

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3 years ago
How do you depreciate a building? ​
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3 years ago
True or false? under medicare part a, a beneficiary can have an unlimited number of benefit periods.
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3 years ago
The bottom-up approach for estimating times and costs that uses costs from past projects that were similar to the current projec
storchak [24]

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3 years ago
Ruth Company produces 1,000 units of a necessary component with the following costs: Direct Materials $34,000 Direct Labor 15,00
Snowcat [4.5K]

Answer:

Option B is correct

The maximum price to be paid is = $64000

Explanation:

To determine the the maximum price we would compute using the relevant costs of internal production.

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