ACCORDING TO 2019 TAX PURPOSES: Harrison Corporation reported pretax book income of $600,000. Tax depreciation exceeded book...
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ACCORDING TO 2019 TAX PURPOSES:
Harrison Corporation reported pretax book income of $600,000.Tax depreciation exceeded book depreciation by $400,000. Inaddition, the company received$300,000 of tax-exempt municipal bondinterest. The company’s prior-year tax Return showed taxable incomeof $50,000. Compute the company’s deferred income tax expense orbenefit.
ACCORDING TO 2019 TAX PURPOSES:
Harrison Corporation reported pretax book income of $600,000.Tax depreciation exceeded book depreciation by $400,000. Inaddition, the company received$300,000 of tax-exempt municipal bondinterest. The company’s prior-year tax Return showed taxable incomeof $50,000. Compute the company’s deferred income tax expense orbenefit.
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Answer Let us assume the tax rate 34 Particulars Amount Pretax book income 600000 Excess tax depreciation 400000 Taxexempt interest income 300000 Net
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