Question:XYZ Company reports income tax expense of $224,000 on its Income Statement for the year ending December 31 Year 4. Included in Year 4's income is interest revenue of $40,000 from some tax-exempt municipal bonds that the company owns. In computing its income tax expense of $224,000, the company also had a temporary difference of $80,000, which will result in a future tax deduction. It is assumed that a tax rate of 30 percent will apply to the future tax deduction. The tax rate for Year 4 (the company's first year of operations) is 40 percent. Given the above information, what amount would XYZ Company report as current income tax payable on its Year 4 Balance Sheet?
A $224,000
B $248,000
C $208,000
D None of these
+ AnswerC
+ Explanation
+ Report
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