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Tax rate 21% ! Please Help Problem P1 Facts: fine ABC's tax...

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Accounting

Tax rate 21% ! Please Help image
Problem P1 Facts: fine ABC's tax accounting methods and GAAP accounting methods are the same. ABC reports pretax GAAP eamings of $4,000,000 for the 12 months ended December 31, 2020. Embedded in pretax GAAP eamings is interest revenue of $1,000 eamed on bonds issued by the State of Texas; a SO paid to the EPA, and $0 of insurance expense on premiums paid for a life insurance policy on the CEO for which the company is beneficiary. Required: 1. Determine the amount of 2020 current federal income tax expense. Problem P1 INVERTED Facts: ABC's tax accounting methods and GAAP accounting methods are the same. ABC reports pretax GAAP earnings of $2,500,000 for the 12 months ended December 31, 2020. Embedded in pretax GAAP earnings is interest revenue of s earned on bonds issued by the State of Texas; a SO fine paid to the EPA: and $0 of insurance expense on premiums paid for a life insurance policy on the CEO for which the company is beneficiary. Current income tax expense for 2020 is $524,580 What amount of interest was earned on the State of Texas bonds? Required: 2. Determine the amount of interest camned on the State of Texas bonds

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