Reference no: EM132488639

Prince Corporation's partial income statement after its first year of operations is as follows:

Income before income taxes            $3,500,000

Income tax expense                           $966,000

Current                                                84,000                   

Deferred                                            1,050,000

Net income                                        $2,450,000

Prince uses the straight-line method of depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The amount charged to depreciation expense on its books this year was $1,400,000. No other differences existed between book income and taxable income except for the amount of depreciation.

Question 1: Assuming a 30% tax rate, what amount was deducted for depreciation on the corporation's tax return for the current year?