Black,Inc.,is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year.Assume a 35% corporate tax rate and no valuation allowance.
Black,Inc.'s,gross deferred tax assets and liabilities at the beginning of Black's year are listed below.
Black,Inc.'s,book income before tax is $6,000.Black records two permanent book-tax differences.It earned $250 in tax-exempt municipal bond interest,and it incurred $500 in nondeductible meals and entertainment expense.What is Black's total provision for income tax expense reported on its GAAP financial statement and its book net income after tax?

Question

Black,Inc.,is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year.Assume a 35% corporate tax rate and no valuation allowance.
  Black,Inc.'s,gross deferred tax assets and liabilities at the beginning of Black's year are listed below.
   Black,Inc.'s,book income before tax is $6,000.Black records two permanent book-tax differences.It earned $250 in tax-exempt municipal bond interest,and it incurred $500 in nondeductible meals and entertainment expense.What is Black's total provision for income tax expense reported on its GAAP financial statement and its book net income after tax?

Quizplus · Accepted Answer

The Answer of Black,Inc.,is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year.Assume a 35% corporate tax rate and no valuation allowance.
  Black,Inc.'s,gross deferred tax assets and liabilities at the beginning of Black's year are listed below.
   Black,Inc.'s,book income before tax is $6,000.Black records two permanent book-tax differences.It earned $250 in tax-exempt municipal bond interest,and it incurred $500 in nondeductible meals and entertainment expense.What is Black's total provision for income tax expense reported on its GAAP financial statement and its book net income after tax?

Black,Inc,is a Domestic Corporation with the Following Balance Sheet for Book