Compute randolph company deferred income tax expense

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Randolph Company reported pretax net income from continuing operations of $1,116,500 and taxable income of $687,500. The book-tax difference of $429,000 was due to a $247,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $99,000 due to an increase in the reserve for bad debts, and a $281,000 favorable permanent difference from the receipt of life insurance proceeds.

Problem 1: Compute Randolph Company's current income tax expense.

Problem 2: Compute Randolph Company's deferred income tax expense or benefit.

Problem 3: Compute Randolph Company's effective tax rate.

Reference no: EM132979349

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