Purple Rose Corporation reported pretax book income of $585,000. Tax depreciation exceeded book depreciation by $305,100. In addition, the company received $335,000 of tax-exempt life insurance proceeds. The prior-year tax return showed taxable income of $101,700. Compute Purple Rose's current income tax expense or benefit.

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The Answer of Purple Rose Corporation reported pretax book income of $585,000. Tax depreciation exceeded book depreciation by $305,100. In addition, the company received $335,000 of tax-exempt life insurance proceeds. The prior-year tax return showed taxable income of $101,700. Compute Purple Rose's current income tax expense or benefit.

Purple Rose Corporation Reported Pretax Book Income of $585,000