Irish Corporation reported pretax book income of $1,000,000 in 2016. Included in the computation were favorable temporary differences of $300,000, unfavorable temporary differences of $100,000, and favorable permanent differences of $200,000. Compute Irish's book equivalent of taxable income. Use this number to compute the company's total income tax provision or benefit for 2016, assuming a tax rate of 34%.

Question

Quizplus · Accepted Answer

The Answer of Irish Corporation reported pretax book income of $1,000,000 in 2016. Included in the computation were favorable temporary differences of $300,000, unfavorable temporary differences of $100,000, and favorable permanent differences of $200,000. Compute Irish's book equivalent of taxable income. Use this number to compute the company's total income tax provision or benefit for 2016, assuming a tax rate of 34%.

Irish Corporation Reported Pretax Book Income of $1,000,000 in 2016