Question

Packard Corporation reported pretax book income of $500,000. Included in the computation were favorable temporary differences of $10,000, unfavorable temporary differences of $100,000, and unfavorable permanent differences of $80,000. The corporation's current income tax expense or benefit would be:

Answer 1

Answer:

The corporation's current income tax expense or benefit would be $170100.

Explanation:

income tax expense or benefit = $500,000 + $100,000 - $10,000 -$80,000)*21%

                                                   = $107,100

Therefore, the corporation's current income tax expense or benefit would be $170100.