Multiple Choice
Morrisson, Inc., earns book net income before tax of $500,000. In computing its book income, Morrisson deducts $50,000 more in warranty expense for book purposes than is allowed for tax purposes. Morrisson records no other temporary or permanent book-tax differences. Assuming that the U.S. tax rate is 21% and no valuation allowance is required, what is Morrisson's current income tax expense reported on its GAAP financial statements?
A) $115,500
B) $105,000
C) $94,500
D) $10,500
Correct Answer:
Verified
Correct Answer:
Verified
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