Reference no: EM132873315

Huskie company reported in the income statement for the year ended December 31, 2017 pretax income of $400,000. The following items are treated differently on the tax return and on the book.

                                                    Tax return                    Per book
Royalty income                               20,000                            40,000
Depreciation expense                      125,000                           100,000
Payment of a penalty none 15,000
The enacted tax rate for 2017 is 30% and 25% for all future years.

Problem 1: What amount should be reported as a current portion of income tax expense in the 2017 income statement?

a) $111,000
b) $102,000
c) $115,500
d) $92,50