Renaldo has pretax book income of $874,000. The following expenses were subtracted in arriving at...
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Renaldo has pretax book income of $874,000. The following expenses were subtracted in arriving at that $874,000 amoust: bad debt expense of $12,000, depreciation expense of $54,000, and fines of $22,000 For tax purposes, Renaldo was able to deduct $8,000 for bad debts and $68,000 for depreciation in the current year. The book-tax differences for bad debes and depreciation are temporary. The fines are non deductible (ie., a permanent diffference). Assuming a tax rate of 25% and that Renaldo had no other book-tax differences, how much total income tax expense should Renaldo report on its GAAP income statement for the current year? $213,000 $218,500 $219,000 $224,000 None of the above
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