McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 79

Ann Corporation reported pre-tax book income of $1,000,000.Included in the computation were favorable temporary differences of $200,000, unfavorable temporary differences of $50,000, and favorable permanent differences of $100,000.Compute the Company's book equivalent of taxable income.Use this number to compute the Company's total income tax provision or benefit, assuming a tax rate of 34%.