A firm began the year with no deferred tax balances

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A firm began the year with no deferred tax balances. Pretax accounting income was $60,000 for the year and the tax rate is 30%. Warranty expense was $8,000 for the books and $3,000 for tax. Depreciation expense was $6,000 for the books and $13,000 for tax; this difference is also equal to the total future difference for depreciation. Depletion was $9,000 for the books and $21,000 for tax. Compute tax expense for this year.

a. 14,400

b. 14,100

c. 16,700

d. 13,800

e. 13,900

Reference no: EM131295410

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