When the components of income tax expense are disclosed on the income statement or footnotes, what will the components include?
When the components of income tax expense are disclosed on the income statement or footnotes, what will the components include?
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 37P
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Can someone please help me with this question? I am completley lost. thank you so much!
Transcribed Image Text:Christensen Inc. reported pre-tax accounting income of $90,000. The items below represent differences between book and taxable income:
Rent received in advance
Municipal bond interest not taxable
Depreciation in excess of book
16,000
20,000
10,000
The company is subject to a 30% income tax rate. When the components of income tax expense are disclosed on the income statement or footnotes, what will the components include?
Current
A.
B.
OC
D
Deferred
Total ITE
28,800
(7,800)
21,000
Current
22,800
Deferred
Total ITE
(1,800)
21,000
Current
Deferred
Total ITE
18,000
9,000
27,000
Current
Deferred
Total ITE
25,800
1,200
27,000
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