Farm Corporation reported pretax book loss of $500,000 in 2018. Tax depreciation exceeded book depreciation by $100,000. In addition, Farm received prepaid income of $50,000, which was included on its tax return but was not included in the book loss. Compute the company's income tax expense or benefit for 2018.

Question

Quizplus · Accepted Answer

The Answer of Farm Corporation reported pretax book loss of $500,000 in 2018. Tax depreciation exceeded book depreciation by $100,000. In addition, Farm received prepaid income of $50,000, which was included on its tax return but was not included in the book loss. Compute the company's income tax expense or benefit for 2018.

Farm Corporation Reported Pretax Book Loss of $500,000 in 2018