Grand Corporation reported pretax book income of $660,000. Tax depreciation exceeded book depreciation by $440,000. In addition, the company received $330,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $55,000. Grand's beginning book (tax) basis in its fixed assets was $2,100,000 ($1,880,000) and its ending book (tax) basis is $2,600,000 ($1,960,000). Compute the company's current income tax expense or benefit. Note: Leave no answer blank. Enter N/A or zero.

Nirvana Corporation reports pretax financial income of $260,000 for 2022. The following items cause taxable income to be different than pretax financial income.   Rental income on the 2022 tax return is $65,000 greater than on the income statement. Depreciation expense on the tax return is greater than depreciation on the income statement by $40,000. Interest on an investment in a municipal bond of $6,500 is reported on the income statement.   Nirvana's tax rate is 25% for all years. There are no deferred taxes at the beginning of 2022. The company expects to realize only 40% of the benefit of any deferred tax assets. The fiscal year ends December 31, 2022.   Required: 1. Prepare the journal entries to record i) income tax expense, income taxes payable, and deferred income taxes for 2022, and ii) any valuation allowance needed.   2. Indicate clearly what would be reported on the income statement beginning with income before income taxes for the year ended December 31, 2022 from just…

Li Corporation reported pretax book income of $660,000. Tax depreciation exceeded book depreciation by $412, 000. Li's beginning book (tax) basis in its fixed assets was $1,960,000 ($1,748, 000) and its ending book (tax) basis is $1,860,000 ($1, 272, 000). In addition, the company received $360, 000 of tax-exempt municipal bond interest. The company's prior - year tax return showed taxable income of $49,000. Assuming a tax rate of 21 percent, compute the company's deferred income tax expense or benefit.

In its first year of operations, HD Corporation reported pretax accounting income of $820 million for the current year. Depreciation reported in the tax return in excess of depreciation in the income statement was $1,020 million. The excess tax will reverse itself evenly over the next three years. The current year's tax rate of 25% will be changed under the current law to 30% next year and 35% for all subsequent years. At the end of the current year, the deferred tax liability related to the excess depreciation for HD Corp, will be: Multiple Choice $340 million $306 million $408 million $357 million