Angel Corporation reported pretax book income of $1,000,000.During the current year,the net reserve for warranties increased by $25,000.In addition,tax depreciation exceeded book depreciation by $100,000.Finally,Angel subtracted a dividends received deduction of $25,000 in computing its current year taxable income.Using a tax rate of 34%,Angel's hypothetical tax expense in its reconciliation of its income tax expense is:

Question

Quizplus · Accepted Answer

The Answer of Angel Corporation reported pretax book income of $1,000,000.During the current year,the net reserve for warranties increased by $25,000.In addition,tax depreciation exceeded book depreciation by $100,000.Finally,Angel subtracted a dividends received deduction of $25,000 in computing its current year taxable income.Using a tax rate of 34%,Angel's hypothetical tax expense in its reconciliation of its income tax expense is:

Angel Corporation Reported Pretax Book Income of $1,000,000