Woodward Corporation reported pretax book income of $1,417,500. Included in the computation were favorable temporary differences of $300,000, unfavorable temporary differences of $106,500, and favorable permanent differences of $192,000. Assuming a tax rate of 34 percent, compute the company's current income tax expense or benefit. (Amounts to be deducted should be indicated by a minus sign.)

Pre-tax book income

Favorable temporary differences

Unfavorable temporary differences

Favorable permanent differences

Taxable income

Tax rate%

Question

Business

Gallagher

12 June, 11:51

Woodward Corporation reported pretax book income of $1,417,500. Included in the computation were favorable temporary differences of $300,000, unfavorable temporary differences of $106,500, and favorable permanent differences of $192,000. Assuming a tax rate of 34 percent, compute the company's current income tax expense or benefit. (Amounts to be deducted should be indicated by a minus sign.)

Pre-tax book income

Favorable temporary differences

Unfavorable temporary differences

Favorable permanent differences

Taxable income

Tax rate%

+1

Answers (1)

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Quinn Stephenson · Answer 1

The company's current income tax expense or benefit is $350,880.

Explanation:

Pre-tax book income $ 1417500

Favorable temporary differences - $300000

Unfavorable temporary differences $106500

Favorable permanent differences - $192000

Taxable income $1032000

Current income tax expense ($1032000 x 34%) $350880

Therefore, The company's current income tax expense or benefit is $350,880.