Solution-How much is the income tax expense

How much is the income tax expense

Reference no: EM133002721

Question - Frey Corporation's income statement for the year ended December 31, 2002, shows pretax income of 1,000,000. The following items are treated differently on the tax return and in the accounting records:

Tax Return Accounting Records

Rent income 70,000 120,000

Depreciation expense 280,000 220,000

Premiums on officers' life insurance - 90,000

Frey's tax rate for 2002 is 30 percent.

Required -

1. How much is the income tax expense for 2002?

2. How much is the current tax expense for 2002?

3. How much is the deferred tax expense (benefit) for 2002?

Reference no: EM133002721

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How much is the income tax expense

Reference no: EM133002721

Reference no: EM133002721

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