Problem 3-10 (LO. 2) Cortez, Inc., reports $600,000 of pretax book net income in 2019....
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Accounting
Problem 3-10 (LO. 2)
Cortez, Inc., reports $600,000 of pretax book net income in 2019. Cortezs book depreciation exceeds tax depreciation that year by $20,000. The corporation reports no other temporary or permanent book-tax differences. Cortezs pertinent U.S. tax rate is 21%, and Cortez earns an after-tax rate of return on capital of 8%.
For 2019, compute the following for Cortez, Inc.
a.
Current income tax expense
$
b.
Deferred income tax expense
$
c.
Total income tax expense
$
a. not 620,000, b. not 130,200, c. is 126,000
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