Reference no: EM131803046

Bishop Corporation began operations in year 1 and had operating losses of $200,000 in year 1 and $150,000 in year 2. For the year ended December 31, year 3, Bishop had pretax book income of $300,000. For the three-year period year 1 to year 3, assume an income tax rate of 40% and no permanent or temporary differences between book and taxable income. Because Bishop began operations in year 1, the entire amount of deferred tax assets recognized in year 1 and year 2 were offset with amounts added to the allowance account. In Bishop's year 3 income statement, how much should be reported as current income tax expense?