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Information for Kent Corp. for the year 2016: Reconciliation of pretax accountin

ID: 2446958 • Letter: I

Question

Information for Kent Corp. for the year 2016:

Reconciliation of pretax accounting income and taxable income:

Pretax accounting income $181,400

Permanent differences (14,500)

166,900

Temporary difference-depreciation (13,200)

Taxable income $153,700

Cumulative future taxable amounts all from depreciation temporary differences:

As of December 31, 2015 $13,800

As of December 31, 2016 $27,000

The enacted tax rate was 23% for 2015 and thereafter. What should Kent report as the current portion of its income tax expense in the year 2016?

$35,351.

$38,387.

$41,722.

None of these answer choices are correct

Explanation / Answer

taxable income =153700

tax rate=23%

income tax expense for4 the year 2016 =153700*23%=$35,351