What amount should Alex report as income tax expense in its interim income statement for the first quarter of Year 5.
What amount should Alex report as income tax expense in its interim income statement for the first quarter of Year 5.
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 10P
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Alex Co., a calendar year end corporation, reported pretax income of S40,000 for the first quater of Year 5. The statutory tax rate for Year 5 is 20%. Alex's effective annual income tax rate for Year 4 was 18%. As of the first quarter of Year 5, Alex calculated its first quarter effective tax rate to 15% and estimages its Year ETR will be 12%. What amount should Alex report as income tax expense in its interim income statement for the first quarter of Year 5.
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