Randolph Company reported pretax net income from continuing operations of $959,000 and taxable income of $590,000. The book–tax difference of $369,000 was due to a $205,000 favorable temporary difference relating to
b. Compute Randolph Company’s
c. Compute Randolph Company’s effective tax rate.
Deferred income tax is a liability to the company which arises due to differences in tax laws and accounting methods, the total tax expense is not equal to tax reported.
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