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Pretax accounting income for the year ended December 31, 2016, was $60 million f

ID: 2445132 • Letter: P

Question

Pretax accounting income for the year ended December 31, 2016, was $60 million for Truffles Company. Truffles' taxable income was $67 million. This was a result of differences between straight-line depreciation for financial reporting purposes and MACRS for tax purposes. The enacted tax rate is 27% for 2016 and 37% thereafter. What amount should Truffles report as the current portion of income tax expense for 2016?(Round your answer to the nearest whole million.)

  

Pretax accounting income for the year ended December 31, 2016, was $60 million for Truffles Company. Truffles' taxable income was $67 million. This was a result of differences between straight-line depreciation for financial reporting purposes and MACRS for tax purposes. The enacted tax rate is 27% for 2016 and 37% thereafter. What amount should Truffles report as the current portion of income tax expense for 2016?(Round your answer to the nearest whole million.)

Explanation / Answer

27% of 67 = $18.09 million

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