Dunn Company’s 2014 income statement reported $90,000 income before provision for in- come taxes. To

Dunn Company’s 2014 income statement reported $90,000 income before provision for in- come taxes. To aid in the computation of the provision for federal income taxes, the following 2014 data are provided:Rent received in advance $16,000Income from tax-exempt municipal bonds 20,000Depreciation deducted for income tax purposes in excess of depreciation reported for financial statement purposes 10,000Enacted corporate income tax rate 35%Required:What amount of current federal income tax liability should Dunn report in its December 31, 2014, balance sheet?View Solution:
Dunn Company s 2014 income statement reported 90 000 income before provision