Marlin Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increased by $25,000. In addition, book depreciation exceeded tax depreciation by $100,000. Finally, Marlin subtracted a dividends received deduction of $15,000 in computing its current - year taxable income. Marlin's current income tax expense or benefit would be:
Marlin Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increased by $25,000. In addition, book depreciation exceeded tax depreciation by $100,000. Finally, Marlin subtracted a dividends received deduction of $15,000 in computing its current - year taxable income. Marlin's current income tax expense or benefit would be:
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 65IIP
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Transcribed Image Text:Marlin Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for
warranties increased by $25,000. In addition, book depreciation exceeded tax depreciation by $100,000.
Finally, Marlin subtracted a dividends received deduction of $15,000 in computing its current - year taxable
income. Marlin's current income tax expense or benefit would be:
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