Calculate the amount of tax expense, Taxation

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Given the below information, calculate the amount of tax expense.  Assume taxes are paid immediately (with  cash).

Note: the statutory rate is assumed to be 35%. You will have to decide whether there is any deferred tax position, given these facts.

 

Income

Statement

 

Tax Return

Difference: Temporary

Revenues

500

500

 

Expenses

- 100

- 100

 

Depreciation Expense

- 40

- 100

60

Pre-tax Income

360

 

 

Taxable Income

 

300

 

Statutory Tax Rate

 

35%

35%

Tax Expense

?

 

 

Taxes Paid (Cash)

 

?

 

Deferred Tax

 

 

?

 


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