Stone Corporation reported pretax book income of $1,000,000 in 2018. Tax depreciation exceeded book depreciation by $300,000. In addition, the reserve for bad debts decreased by $50,000. Stone had a net deferred tax asset of $34,000 at the beginning of the year, representing a net deductible temporary difference of $100,000 (taxed at 34%). At the beginning of the tax year, Congress reduced the corporate tax rate to 21%. Compute the Company's current and deferred income tax expense or benefit for 2018.

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The Answer of Stone Corporation reported pretax book income of $1,000,000 in 2018. Tax depreciation exceeded book depreciation by $300,000. In addition, the reserve for bad debts decreased by $50,000. Stone had a net deferred tax asset of $34,000 at the beginning of the year, representing a net deductible temporary difference of $100,000 (taxed at 34%). At the beginning of the tax year, Congress reduced the corporate tax rate to 21%. Compute the Company's current and deferred income tax expense or benefit for 2018.

Stone Corporation Reported Pretax Book Income of $1,000,000 in 2018