Hafnaoui Company reported pretax net income from continuing operations of $1,077,500 and taxable income of $657,500. The book–tax difference of $420,000 was due to a $252,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $86,000 due to an increase in the reserve for bad debts, and a $254,000 favorable permanent difference from the receipt of life insurance proceeds A compute hafnaoui company current income tax expense b. Compute Hafnaoui Company's deferred income tax expense or (benefit). c. Compute Hafnaoui Company's effective tax rate. d. Provide a reconciliation of Hafnaoui Company's effective tax rate with its hypothetical tax rate of 21 percent. Note: Amounts to be deducted should be indicated by a minus sign. Round your percentages to 2 decimal places. ETR Reconsiliation (in$) Income Tax Expense at 21% Tax (Benefit/Expense) From Permanent Difference Income Tax Provision ETR Reconciliation (in %) Hypothetical Income Tax Rate 21 % Tax (Benefit/Expense) From permanent Difference % Effective Tax Rate %

Cass Corporation reported pretax book income of $9,490,000. During the current year, the reserve for bad debts increased by $140,000. In addition, tax depreciation exceeded book depreciation by $360,000. Cass Corporation sold a fixed asset and reported book gain of $66,250 and tax gain of $96,000. Finally, the company received $300,000 of tax-exempt life insurance proceeds from the death of one of its officers. Compute the company’s current income tax expense or benefit. (Round your final answer to nearest whole dollar amount. Amounts to be deducted should be indicated by a minus sign.) Pretax book income Favorable temporary differences Unfavorable temporary differences favorable permanent differences taxable income Current income tax expense

autista Corporation reported pretax book income of $1,535,000. Included in the computation were favorable temporary differences of $292,000 unfavorable temporary differences of $54,000, and favorable permanent differences of $129,000. Compute the company's current income tax expense or benefit. Note: Round your final answer to nearest whole dollar amount. Amounts to be deducted should be indicated by a minus sign. Pretax book income Favorable temporary differences Unfavorable temporary differences favorable permanent differences taxable income Current income tax expense

• Bautista Corporation reported pretax book income of $1,535,000. Included in the computation were favorable temporary differences of $292,000 unfavorable temporary differences of $54,000, and favorable permanent differences of $129,000. Compute the company's current income tax expense or benefit. Note: Round your final answer to nearest whole dollar amount. Amounts to be deducted should be indicated by a minus sign. Pretax book income Favorable temporary differences Unfavorable temporary differences favorable permanent differences taxable income Current income tax expense

A company commenced business on 1 July 2022. On 30 June 2023, an extract of the statement of financial position prepared for internal purposes, but excluding the effect of income tax, disclosed the following information:  AssetsLiabilitiesCash$20,000Accounts Payables$50,000Inventories60,000Provision for annual Leave8,000Plant200,000  Accumulated Depreciation(20,000)   Additional information:  The plant was acquired on 1 July 2022. Depreciation for accounting purposes was 10% (straight-line method), while 20% (straight-line) was used for tax purposes. The tax rate is 30%.The deferred tax liability and deferred tax asset are:Group of answer choicesDTL = $2,400 and DTA = $6,000DTL = $20,000 and DTA = $8,000DTL = $8,000 and DTA = $20,000DTL = $6,000 and DTA = $2,400

Saginaw Inc. completed its first year of operations with a pretax loss of $742,500. The tax return showed a net operating loss of $896,500 that the company will carry forward. The $154,000 book-tax difference results from excess tax depreciation over book depreciation. Management has determined that they should record a valuation allowance equal to the net deferred tax asset. Assume the current tax expense is zero. b. Prepare the journal entry to record the deferred tax consequences for recognition of the current year NOL before considering the valuation allowance. C prepare the journal entry to record deferred tax consequences of valuation allowance D prepare the journal entry to record deferred tax consequences of depreciation book-tax differences