What amount should be reported as current tax expense for the current year?   a. 2,250,000 b. 1,950,000 c. 1,050,000 d. 1,350,000 2. What amount should be reported as total income tax expense?  a. 1,350,000 b. 1,950,000 c. 1,050,000 d. 2,250,000 3. What amount of income tax payable should be presented at year end?

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
Problem 19P: The Bookbinder Company had 500,000 cumulative operating losses prior to the beginning of last year....
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For the year ended December 31, year 1, Tyre Co. reported pretax financial statement income of $7,500,000. Its taxable income was $6,500,000. The difference is due to accelerated depreciation for income tax purposes. Tyre's effective income tax rate is 30%, and Tyre made estimated tax payments during year 1 of $900,000.

1. What amount should be reported as current tax expense for the current year? 

 a. 2,250,000
b. 1,950,000
c. 1,050,000
d. 1,350,000

2. What amount should be reported as total income tax expense? 

a. 1,350,000
b. 1,950,000
c. 1,050,000
d. 2,250,000

3. What amount of income tax payable should be presented at year end?

a.  2,250,000
b. 1,350,000
c. 1,950,000
d. 1,050,000
 
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