1)Information for Kent Corp. for the year 2016:
Reconciliation of pretax accounting income and taxable income:
Pretax accounting income $181,000
Permanent differences (15,400)
165,600
Temporary difference-depreciation (12,800)
Taxable income $152,800
Cumulative future taxable amounts all from depreciation temporary differences:
As of December 31, 2015 $12,600
As of December 31, 2016 $25,400
The enacted tax rate was 20% for 2015 and thereafter.
What should Kent report as the current portion of its income tax expense in the year 2016?
2)Information for Kent Corp. for the year 2016:
Reconciliation of pretax accounting income and taxable income:
Pretax accounting income $174,000
Permanent differences (14,800)
159,200
Temporary difference-depreciation (11,500)
Taxable income $147,700
Cumulative future taxable amounts all from depreciation temporary differences:
As of December 31, 2015 $12,500
As of December 31, 2016 $24,300
The enacted tax rate was 36% for 2015 and thereafter.
What would Kent's income tax expense be in the year 2016?
