In 2019, Mini reports $1,503,600 of pretax book net income. Mini did not deduct any bad debt expense for book purposes in 2019 but did deduct $132,900 in bad debt expense for tax purposes. Mini reports no other temporary or permanent differences. Assuming that the pertinent U.S. Federal corporate income tax rate is 21%, and Mini earns an after-tax rate of return on capital of 8%. For 2019, compute Mini's total income tax expense, current income tax expense, and deferred income tax expense. If required, round your answers to nearest dollar. a.  Current income tax expense ____ b.  Deferred income tax benefit ____ c.  Total income tax expense ____

SWFT Corp Partner Estates Trusts
42nd Edition
ISBN:9780357161548
Author:Raabe
Publisher:Raabe
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 20CE
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In 2019, Mini reports $1,503,600 of pretax book net income. Mini did not deduct any bad debt expense for book purposes in 2019 but did deduct $132,900 in bad debt expense for tax purposes. Mini reports no other temporary or permanent differences. Assuming that the pertinent U.S. Federal corporate income tax rate is 21%, and Mini earns an after-tax rate of return on capital of 8%.

For 2019, compute Mini's total income tax expense, current income tax expense, and deferred income tax expense.

If required, round your answers to nearest dollar.

a.  Current income tax expense ____
b.  Deferred income tax benefit ____
c.  Total income tax expense ____
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