What should tracker record as its current federal income tax

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Question:

The books of the Tracker Company for the year ended December 31, 2008, showed pretax income of $360,000. In computing the taxable income for federal income tax purposes, the following timing differences were taken into account: 

Depreciation deducted for tax purposes in excess of depreciation recorded on the books ...$16,000

Income from installment sale reportable for tax purposes in excess of income recognized on the books ...$12,000

What should Tracker record as its current federal income tax liability at December 31, 2008, assuming a corporate income tax rate of 30 percent?

a. $99,600

b. $103,200

c. $106,800

d. $108,000

Reference no: EM13693329

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