Information for Kent Corp. for the year 2022:   Reconciliation of pretax accounting income and taxable income:           Pretax accounting income $ 180,000     Permanent differences   (15,000 )       165,000     Temporary difference-depreciation   (12,000 )   Taxable income $ 153,000       The enacted tax rate was 30% for 2022 and thereafter.   What would Kent's income tax expense be in the year 2022? A) $42,300. B) $45,900. C) $49,500. D) None of these answer choices are correct.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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) Information for Kent Corp. for the year 2022:

 

Reconciliation of pretax accounting income and taxable income:

 

 

 

 

 

Pretax accounting income

$

180,000

 

 

Permanent differences

 

(15,000

)

 

 

 

165,000

 

 

Temporary difference-depreciation

 

(12,000

)

 

Taxable income

$

153,000

 

 

 

The enacted tax rate was 30% for 2022 and thereafter.

 

What would Kent's income tax expense be in the year 2022?

  1. A) $42,300.
  2. B) $45,900.
  3. C) $49,500.
  4. D) None of these answer choices are correct.
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