Compute the company provision for income taxes

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Reference no: EM133041438

Problem - Pepco Company pays quarterly taxes as required by the IRS. You are given the following information

Actual year to date income through quarter 3: $331,500

Estimated annual earnings: $450,000

Add (subtract) permanent differences: $30,000

Add (subtract) temporary differences: ($110,000)

Statutory tax rate: 22%

First quarter income tax provision: $25,000

Second quarter income tax provision: $5,000

Required - Compute the company's provision for income taxes for the third quarter. Show work.

Reference no: EM133041438

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