Calculate current tax expense for given years

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Reference no: EM132736678

Question: Carla Corp. sold an investment on an installment basis. The total gain of $62,400 was reported for financial reporting purposes in the period of sale. The company qualifies to use the installment-sales method for tax purposes. The installment period is 3 years; one-third of the sale price is collected in the period of sale. The tax rate was 40% in 2017, and 35% in 2018 and 2019. The 35% tax rate was not enacted in law until 2018. The accounting and tax data for the 3 years is shown below.

Cumulative temporary difference for the following years

2017

2018

2019

Calculate current tax expense for years 2017-2019.

Calculate deferred tax expense for 2017-2019.

Reference no: EM132736678

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