Cass Corporation reported pretax book income of $12,870,000. During the current year, the reserve for bad debts increased by $285,000. In addition, tax depreciation exceeded book depreciation by $250,000. Cass Corporation sold a fixed asset and reported book gain of $102,750 and tax gain of $136,500. Finally, the company received $343,000 of tax-exempt life insurance proceeds from the death of one of its officers. Compute the company's current income tax expense or benefit. Note: Round your final answer to nearest whole dollar amount. Amounts to be deducted should be indicated by a minus sign.

Cass Corporation reported pretax book income of $12,870,000. During the current year, the reserve for bad debts increased by $285,000. In addition, tax depreciation exceeded book depreciation by $250,000. Cass Corporation sold a fixed asset and reported book gain of $102,750 and tax gain of $136,500. Finally, the company received $343,000 of tax-exempt life insurance proceeds from the death of one of its officers. Compute the company's current income tax expense or benefit. Note: Round your final answer to nearest whole dollar amount. Amounts to be deducted should be indicated by a minus sign.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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