Vasquez Corp.'s 2017 income statement showed pretax accounting income of $2,040,000. To compute the federal incometax liability, the following 2017 data are provided:Income from exempt municipal bondsDepreciation deducted for tax purposes in excessof depreciation deducted for financial statement purposesEstimated federal income tax payments madeEnacted corporate income tax rate$ 110,000144,000330,00030%What amount of current federal income tax liability should be included in Vasquez's December 31, 2017 balance sheet?

Formula: Taxable amount = Adjusted Accounting income x Corporate income tax rate

Answered: Vasquez Corp.'s 2017 income statement…

Vasquez Corp.'s 2017 income statement showed pretax accounting income of $2,040,000. To compute the federal income tax liability, the following 2017 data are provided:

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 47P

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Question

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Vasquez Corp.'s 2017 income statement showed pretax accounting income of $2,040,000. To compute the federal income
tax liability, the following 2017 data are provided:
Income from exempt municipal bonds
Depreciation deducted for tax purposes in excess
of depreciation deducted for financial statement purposes
Estimated federal income tax payments made
Enacted corporate income tax rate
$ 110,000
144,000
330,000
30%
What amount of current federal income tax liability should be included in Vasquez's December 31, 2017 balance sheet?

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