10. Sheridan Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2021: Book income before income taxes $ 2630000 Add temporary difference Construction contract revenue which will reverse in 2022 233000 Deduct temporary difference Depreciation expense which will reverse in equal amounts in each of the next four years ( 943200) Taxable income $ 1919800 Sheridan's effective income tax rate is 25% for 2021. What amount should Sheridanreport in its 2021 income statement as the current provision for income taxes? A) $ 479950 B) $ 657500 C) $ 715750 D) $ 58250
10. Sheridan Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2021: Book income before income taxes $ 2630000 Add temporary difference Construction contract revenue which will reverse in 2022 233000 Deduct temporary difference Depreciation expense which will reverse in equal amounts in each of the next four years ( 943200) Taxable income $ 1919800 Sheridan's effective income tax rate is 25% for 2021. What amount should Sheridanreport in its 2021 income statement as the current provision for income taxes? A) $ 479950 B) $ 657500 C) $ 715750 D) $ 58250
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
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10. Sheridan Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2021:
Book income before income taxes $ 2630000
Add temporary difference
Construction contract revenue which will reverse in 2022 233000
Deduct temporary difference
Depreciation expense which will reverse in equal amounts in
each of the next four years ( 943200)
Taxable income $ 1919800
Sheridan's effective income tax rate is 25% for 2021. What amount should Sheridanreport in its 2021 income statement as the current provision for income taxes?
A) $ 479950
B) $ 657500
C) $ 715750
D) $ 58250
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