Question

Information for Kent Corp. for the year 2016:

Reconciliation of pretax accounting income and taxable income:


Pretax accounting income $181,000
Permanent differences
(15,400)

165,600
Temporary difference-depreciation
(12,800)

Taxable income
$152,800


Cumulative future taxable amounts all from depreciation temporary differences:

As of December 31, 2015 $12,600
As of December 31, 2016 $25,400

The enacted tax rate was 20% for 2015 and thereafter.

What should Kent report as the current portion of its income tax expense in the year 2016?

Answer 1

$30,560

Step-by-step explanation:

The computation of the income tax expense for the year 2016 is shown below:

= Taxable income × enacted tax rate

= $152,800 × 20%

= $30,560

Simply we multiply the taxable income with the enacted tax rate so that the correct amount of income tax expense can come

All other information which is given is not relevant. Hence, ignored it