The following information relates to Franklin Freightways for its first year of operations (data in...
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Accounting
The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars): Pretax accounting income: Pretax accounting income included: Overweight fines (not deductible for tax purposes) Depreciation expense Depreciation in the tax return 5 MED The applicable tax rate is 25%. There are no other temporary or permanent differences. Which of the following must Franklin Freightways disclose related to the income tax expense reported in the income statement ($ in millions)? Multiple Cholce Only the current portion of tax expense of $40. Only the total tax expense of $50. Both the current portion of the tax expense of $40 and the deferred porion of the tax expense of $10. None of these answer choices are correct
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