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rate is 21% Purple Rose Corporation reported pretax book income of $720,000....

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Accounting

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Purple Rose Corporation reported pretax book income of $720,000. Tax depreciation exceeded book depreciation by $50,000 and the reserve for bad debt was decreased by $5,000. In addition, the company received $120,000 of tax-exempt life insurance proceeds and incurred $11.000 in nondeductible meals and entertainment expenses which are included in book income. The prior year tax return showed taxable income of $200.000. a. Compute Purple Rose's current income tax expense or benefit b. Compute Purple Rose's deferred income tax expense or benefit

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