Reference no: EM132728179

Question - Belle Company prepared the following reconciliation of pretax financial statement income to taxable income for the first year of operations:

Pretax financial income; 1,600,000

Nontaxable interest received; (50,000)

Long-term loss accrual in excess of deductible amount 100,000

Depreciation in excess of financial depreciation (250,000)

Taxable Income 1,400,000

Income tax rate 30%

Required -

What amount should be reported as income tax expense - current portion in the income statement?

What amount should be reported as deferred tax liability at year-end?

What amount should be reported as deferred tax asset at year-end?

What amount should be reported as total tax expense for the first year?