Grand Corporation reported pretax book income of $609,000. Tax depreciation exceeded book depreciation by $406,000. In addition, the company received $304,500 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $50,750. Grand's beginning book (tax) basis in its fixed assets was $2,015,000 ($1,812,000) and its ending book (tax) basis is $2,515,000 ($1,909,000). Compute the company's current income tax expense or benefit. Note: Leave no answer blank. Enter N/A or zero. > Answer is complete but not entirely correct. N/A ✔$ 0✓ expense ✓$ (21,315) X Current income tax Deferred income tax

Grand Corporation reported pretax book income of $609,000. Tax depreciation exceeded book depreciation by $406,000. In addition, the company received $304,500 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $50,750. Grand's beginning book (tax) basis in its fixed assets was $2,015,000 ($1,812,000) and its ending book (tax) basis is $2,515,000 ($1,909,000). Compute the company's current income tax expense or benefit. Note: Leave no answer blank. Enter N/A or zero. > Answer is complete but not entirely correct. N/A ✔$ 0✓ expense ✓$ (21,315) X Current income tax Deferred income tax

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 2P

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