crane co at the end of 202-itsfirst year of of operations prepared a reconciliation between pertax financial income and taxable income as follows; Pertax financial income $1170000 Estimated litigation expensense 2950000 Installment sales (2360000) Taxable income 1760000
( crane co at the end of 202-itsfirst year of of operations prepared a reconciliation between pertax financial income and taxable income as follows;
Pertax financial income $1170000
Estimated litigation expensense 2950000
Installment sales (2360000)
Taxable income 1760000
( crane co at the end of 202-itsfirst year of of operations prepared a reconciliation between pertax financial income and taxable income as follows;
Pertax financial income $1170000
Estimated litigation expensense 2950000
Installment sales (2360000)
Taxable income 1760000
The estimated litigation expense of $2950000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of 1180000 in each of the next two years. The estimated libility for litigation is classified as noncurrent and the installment accounts receivable are classified as $1180000 current and $1180000 noncurrent the income tax rate is 20% for all years.
The income tax expense is
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