Question

Packard Corporation reported pretax book income of $501,400. Included in the computation were favorable temporary differences of $11,400, unfavorable temporary differences of $101,400, and unfavorable permanent differences of $80,700. The corporation's current income tax expense or benefit would be:

Answer 1

The answer is: The amount of: $ 330,700.

Explanation:

Packard Corporation had a pre-tax book income of $ 501,400. Then he has a favorable amount of $ 11,400 that he would therefore add, and unfavorable amounts of $ 101,400 and $ 80,700 that would be subtracted. The current expense or benefit of the corporation's income tax would be: 501,400 + 11,400 - 101,400 - 80,700 = $ 330,700.

The answer is: The amount of: $ 330,700.