Question:In computing its income tax expense for the current year (its first year of operations), XYZ Company has an $18,000 temporary difference (accelerated depreciation for tax purposes). It is assumed that a tax rate of 35 percent will apply to the future period of taxable income. The company's income for tax purposes is $282,000 and the current tax rate is 40 percent. What amount would XYZ Company report as income tax expense for the current year? 

A $119,100 
B $120,000 
C $105,600 
D $106,500 

+ Answer
B 

+ Explanation
Answer not sure

+ Report

Md. Habib Ullah

Editor, VCampus

Your Name

Your Email

Type of Report
Spelling MistakeIncorrect AnswerGrammar MistakeContent MissingImproper Text FormatInsufficient AnswerDuplicate QuestionImproper Sentence StructureImproper Equation/FormulaOther

Description