What is the income tax expense

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Question - In its 2016 income statement. Tow reported proceeds from an officers life insurance policy 90,000 and depreciation of 250,000. Tow was the owner and beneficiary of the life insurance on its officer. Tow deducted depreciation of 370,000 in its 2016 income tax return when the tax rate was 40%. Data related to the excess tax reduction for depreciation follow:

Year Reversal of excess tax depreciation Enacted Tax Rates

2017 10,000 40%

2018 20,000 40%

2019 40,000 30%

2010 50,000 30%

There are no temporary differences. Taxable income in 2016 is 67,500. Tow expects to report profits for tax purposes for all future years.

What is the 2016 income tax expense?

Reference no: EM132251774

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