Cass Corporation reported pretax book income of $11,730,000. During the current year, the reserve for bad debts increased by $210,000. In addition, tax depreciation exceeded book depreciation by $210,000. Cass Corporation sold a fixed asset and reported book gain of $74,000 and tax gain of $111,250. Finally, the company received $293,000 of tax-exempt life insurance proceeds from the death of one of its officers. Compute the company's current income tax expense or benefit. (Round your final answer to nearest whole dollar amount. Amounts to be deducted should be indicated by a minus sign.) Pretax book income Bad debt reserve Depreciation Fixed asset gain Tax-exempt life insurance proceeds Taxable income Current income tax expense
Cass Corporation reported pretax book income of $11,730,000. During the current year, the reserve for bad debts increased by $210,000. In addition, tax depreciation exceeded book depreciation by $210,000. Cass Corporation sold a fixed asset and reported book gain of $74,000 and tax gain of $111,250. Finally, the company received $293,000 of tax-exempt life insurance proceeds from the death of one of its officers. Compute the company's current income tax expense or benefit. (Round your final answer to nearest whole dollar amount. Amounts to be deducted should be indicated by a minus sign.) Pretax book income Bad debt reserve Depreciation Fixed asset gain Tax-exempt life insurance proceeds Taxable income Current income tax expense
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 5BCRQ
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Transcribed Image Text:Cass Corporation reported pretax book income of $11,730,000. During the current year, the reserve for bad debts increased by
$210,000. In addition, tax depreciation exceeded book depreciation by $210,000. Cass Corporation sold a fixed asset and reported
book gain of $74,000 and tax gain of $111,250. Finally, the company received $293,000 of tax-exempt life insurance proceeds from the
death of one of its officers. Compute the company's current income tax expense or benefit. (Round your final answer to nearest
whole dollar amount. Amounts to be deducted should be indicated by a minus sign.)
Pretax book income
Bad debt reserve
Depreciation
Fixed asset gain
Tax-exempt life insurance proceeds
Taxable income
Current income tax expense
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