Cold, Inc., reported a $100,000 total tax expense for financial statement purposes in 2014. This total expense consisted of $150,000 in current tax expense and a deferred tax benefit of $50,000. The deferred tax benefit consisted of $90,000 in deferred tax assets reduced by a valuation allowance of $40,000. In 2015, Cold reports $600,000 in book net income before tax. Cold records no other permanent or temporary book-tax differences. At the end of 2015, Cold's auditors determine that the existing valuation allowance of $40,000 should be reduced to zero. What is Cold's total tax expense for 2015?

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The Answer of Cold, Inc., reported a $100,000 total tax expense for financial statement purposes in 2014. This total expense consisted of $150,000 in current tax expense and a deferred tax benefit of $50,000. The deferred tax benefit consisted of $90,000 in deferred tax assets reduced by a valuation allowance of $40,000. In 2015, Cold reports $600,000 in book net income before tax. Cold records no other permanent or temporary book-tax differences. At the end of 2015, Cold's auditors determine that the existing valuation allowance of $40,000 should be reduced to zero. What is Cold's total tax expense for 2015?

Cold, Inc, Reported a $100,000 Total Tax Expense for Financial Statement