Cardinal Corporation reported pretax book income of $3,000,000.During the current year,the reserve for bad debts increased by $200,000.In addition,book depreciation exceeded tax depreciation by $100,000.Cardinal sold a fixed asset and reported a book gain of $60,000 and a tax gain of $80,000.Finally,Cardinal deducted $50,000 of domestic production activities deduction on its tax return.Using a tax rate of 34%,compute Cardinal's current income tax expense or benefit.

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The Answer of Cardinal Corporation reported pretax book income of $3,000,000.During the current year,the reserve for bad debts increased by $200,000.In addition,book depreciation exceeded tax depreciation by $100,000.Cardinal sold a fixed asset and reported a book gain of $60,000 and a tax gain of $80,000.Finally,Cardinal deducted $50,000 of domestic production activities deduction on its tax return.Using a tax rate of 34%,compute Cardinal's current income tax expense or benefit.

Cardinal Corporation Reported Pretax Book Income of $3,000,000