Pretax financial income for 2021 $2,700,000 Tax exempt interest (150,000) Originating temporary difference (450,000) Taxable income $2,100,000 The temporary difference will reverse evenly over the next two years at an enacted tax rate of 30%. The enacted tax rate for 2021 is 20%. What amount should be reported in its 2021 income statement as the current portion of?

$420,000

Explanation:

pretax financial income 2021 = $2,700,000

tax exempt interest 2021 = $150,000

temporary differences = $450,000

taxable income = pretax financial income - tax exempt interest - temporary differences = $2,100,000

current portion of its provision for income taxes 2021 = taxable income 2021 x tax rate 2021* = $2,100,000 x 20% = $420,000

*Current provision for income taxes must use the current tax rate.

Income tax for 2021 = $450,000

Explanation ;

Given the following :

Pretax income,2021 = $2,700,000

interest 2021 = $(150,000) — Interest are exempted from tax payment

temporary differences = $450,000

taxable income = pretax income -( tax exempt interest + temporary differences) =

Taxable income = $2,700,000 - ( $150,000 + 450,000)

Taxable income = $2,100,000

current portion of its provision for income taxes = taxable income 2021 x tax rate

$2,100,000 x 20% = $420,000

answer///parietal;

answer///the factor market;