Grand Corporation reported pretax book income of $805,000. Tax depreciation exceeded book depreciation by $535,000. In addition, the company received $330,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $37,000. Compute the company's current and deferred income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.)
Grand Corporation reported pretax book income of $805,000. Tax depreciation exceeded book depreciation by $535,000. In addition, the company received $330,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $37,000. Compute the company's current and deferred income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.)
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 11DQ
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![Grand Corporation reported pretax book
income of $805,000. Tax depreciation
exceeded book depreciation by $535,000. In
addition, the company received $330,000 of
tax-exempt municipal bond interest. The
company's prior-year tax return showed
taxable income of $37,000. Compute the
company's current and deferred income tax
expense or benefit. (Leave no answer blank.
Enter N/A or zero.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8653c805-c13a-4426-8521-1715a6a31f90%2Fe4617a96-3275-4f28-aee6-67bf6abfc080%2Fm5sfva_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Grand Corporation reported pretax book
income of $805,000. Tax depreciation
exceeded book depreciation by $535,000. In
addition, the company received $330,000 of
tax-exempt municipal bond interest. The
company's prior-year tax return showed
taxable income of $37,000. Compute the
company's current and deferred income tax
expense or benefit. (Leave no answer blank.
Enter N/A or zero.)
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