Reference no: EM132783964

Rey Company prepared the following reconciliation for the first year of operations:

Pretax financial income 1,600,000

Nontaxable interest received ( 50,000)

Long-term loss accrual in excess of deductible amount 100,000

Depreciation in excess of financial depreciation ( 250,000)

Taxable income (Tax rate is 30%) 1,400,000

Problem 1: What amount should be reported as deferred tax asset?

a. 45,000

b. 30,000

c. 90,000

d. 75,000

Problem 2: What amount should be reported as current tax expense?

A. 420,000

B. 495,000

C. 480,000

D. 465,000

Problem 3: What amount should be reported as total income tax expense?

A. 495,000

B. 465,000

C. 480,000

D. 420,000