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Cain Corp.'s 2008 income statement showed pretax accounting income of $750,000. To compute the federal income tax liability, the following 2008 data are provided:

Income from exempt municipal bonds $ 30,000
Depreciation deducted for tax purposes in excess of depreciation
deducted for financial statement purposes 60,000
Estimated federal income tax payments made 132,000
Enacted corporate income tax rate 30%

What amount of current federal income tax liability should be included in Cain's December 31, 2008 balance sheet?

a. $48,000

b. $66,000

c. $75,000

d. $198,000

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M995247

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