Reference no: EM132849929

Questions -

Q1. Swordfish Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increased by $25,000. In addition, book depreciation exceeded tax depreciation by $100,000. In prior years, tax depreciation exceeded book depreciation by a cumulative amount of $500,000. Finally, Swordfish subtracted a dividends received deduction of $15,000 in computing its current-year taxable income. Find the Swordfish's deferred income tax expense or benefit?

-$23,100 net deferred tax expense.

-$23,100 net deferred tax benefit.

-$26,250 net deferred tax benefit.

-$26,250 net deferred tax expense.

Q2. Marlin Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increased by $25,000. In addition, book depreciation exceeded tax depreciation by $100,000. Finally, Marlin subtracted a dividends received deduction of $15,000 in computing its current-year taxable income. Find the Marlin's current income tax expense or benefit?

-$236,250 tax expense.

-$233,100 tax expense.

-$210,000 tax expense.

-$205,800 tax expense.

Q3. Marlin Corporation reported pretax book income of $1,009,000. During the current year, the net reserve for warranties increased by $26,800. In addition, book depreciation exceeded tax depreciation by $100,900. Finally, Marlin subtracted a dividends received deduction of $15,900 in computing its current-year taxable income. Find the Marlin's current income tax expense or benefit?

-$238,707 tax expense.

-$235,368 tax expense.

-$211,890 tax expense.

-$207,407 tax expense.