Calculating current and deferred income taxes

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Reference no: EM131212797

Venus Corp.'s worksheet for calculating current and deferred income taxes for Year 1 follows: Year 1 Year 2 Year 3 Pretax income $1,400 Temporary differences: Depreciation (800) (1,200)$ 2,000 Warranty costs 400 (100) (300) Taxable income $1000 (1,300 1,700 Loss carryback (1,000) 1,000 Loss carryforward 300 (300) $0 $0 $1,400 Enacted rate 30% 30% 25% Venus had no prior deferred tax balances. In its Year 1 income statement, what amount should Venus report as: Current income tax expense? $420 $350 $300 $0

Reference no: EM131212797

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