Current portion of inventive total income tax expense

Reference no: EM13149462

Inventive Corporation's income statement for the year ended December 31, 2011, shows pretax income of $300,000. The following items are treated differently on the tax return and in the accounting records:

Tax Accounting

Return Records
Warranty expense ......................$170,000 $185,500
Depreciation expense ..................150,000 100,000
Premiums on officers' life insurance .. -- 60,000

Assume that Inventive's tax rate for 2011 is 40 percent. What is the current portion of Inventive's total income tax expense for 2011?

A) $106,200

B) $120,200

C) $130,200

D) $144,200

Reference no: EM13149462

Questions Cloud

Determining effect of cost structure on profitability : Briefly - in 150 words or less - describe the effect of cost structure on profitability, including recommendations for each company given the current economic environment, as you understand it.

What is the pressure of the dry oxygen gas : Oxygen gas is collected by water displacement from the reaction of sodium peroxide and water. The oxygen gas displaces 318 ml of water at 23 degrees C and 1 atm. What is the pressure of the dry oxygen gas?

Compare and contrast principles of institutionalist school : Compare and contrast the principles of the institutionalist school to neoclassicism. What tenets of neoclassicism do you think institutionalist economists would reject? Defend your selection.

Probability that seat will be available for every person : If the airline sells 160 tickets for a flight that has only 155 seats, what is probability that a seat will be available for every person holding a reservation and planning to fly?

Current portion of inventive total income tax expense : Assume that Inventive's tax rate for 2011 is 40 percent. What is the current portion of Inventive's total income tax expense for 2011?

Explain hcl would be required to neutralize the solution : How many additional mL of 0.0750 M Ca(OH)2 or ).100 M HCl would be required to neutralize the solution?

Evaluate the institutionalist economists : Evaluate the institutionalist economists. Determine which economist you feel made the most significant contribution to economic theory. Justify your selection.

Gain or loss actual or constructive : What is the book value of its liability? If an affiliated company purchases half the bonds in the market at 98, what is the gain or loss? Is the gain or loss actual or constructive?

What happens to the price level pt when money growth rate : What happens to the price level pt when the money growth rate m changes, holding the current money supply mt constant?

User Account

All Pages