Reference no: EM132649505

Problem - Britton, Inc., an accrual basis C corporation, sells widgets on credit. Its book and taxable income for year 1 totals $60,000, before accounting for bad debts. Britton's book allowance for uncollectible accounts increased for year 1 by $10,000, but none of the entity's bad debts received a specific write-off for tax purposes. The applicable income tax rate (combined Federal, state, and global) for year 1 and thereafter is 30%. Compute Britton's year 1 current and deferred income tax expense.