Income tax expense should be reported on income statement

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Reference no: EM131202981

During 2015, its first year of operation, a company recorded depreciation expense of $ 50,000 for book purposes. For tax purposes during 2015, $ 100,000 of depreciation expense was deducted. The temporary difference created during 2015 will reverse equally during 2016 and 2017. Book icome from operation during the first year was $ 570,000. The income tax rate was 40%.

What income tax expense should be reported on the income statement for the first year of operation?

Reference no: EM131202981

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