Reference no: EM132504742

Question - Cass Corporation reported pretax book income of $10,000,000. During the current year, the reserve for bad debts increased by $100,000. In addition, tax depreciation exceeded book depreciation by $200,000. Cass Corporation sold a fixed asset and reported book gain of $50,000 and tax gain of $75,000. Finally, the company received $250,000 of tax-exempt life insurance proceeds from the death of one of its officers. Assuming no valuation allowance, compute the (1) income tax provision (benefit), (2) current income tax expense (benefit), and (3) deferred income tax expense (benefit).