Joy Corporation prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2005:
Book income before income taxes $750,000
Add temporary difference:
Construction contract revenue that will reverse in 2006 100,000
Deduct temporary difference:
Depreciation expense that will reverse in equal amounts in each of the next four years (400,000)
Taxable income $450,000
Joy's income tax rate is 35% for 2005.
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1. What amount should Joy report in its 2005 income statement as the current provision for income ...
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