What is total tax expense

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Lily, Inc. reported a $100,000 total tax expense for financial statement purposes in 2013. This total expense consisted of $250,000 in current tax expense and a deferred tax benefit of $150,000. The deferred tax benefit consisted of $190,000 in deferred tax assets reduced by a valuation allowance of $40,000. In 2014, Lily reports $400,000 in book net income before tax. Lily has no permanent or temporary book-tax differences for 2014. At the end of 2014, Lily's auditors determine that the existing valuation allowance of $40,000 should be reduced to zero. Assuming a tax rate of 35%, what is Lily's total tax expense for 2014?

Reference no: EM13868279

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