Business, 25.12.2019 04:31 ZoomZoom44

Cold, inc.,reported a $100,000 total tax expense for financial statement purposes in year 1.this total expense consisted of $150,000 in current tax expense and a deferred tax benefit of $50,000.the deferred tax benefit consisted of $90,000 in deferred tax assets reduced by a valuation allowance of $40,000.in year 2,cold reports $600,000 in book net income before tax. cold records no other permanent or temporary book-tax differences. at the end of year 2, cold's auditors determine that the existing valuation allowance of $40,000 should be reduced to zero. what is cold's total tax expense for year 2?
a. $250,000
b. $126,000
c. $86,000
d. $40,000

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Cold, inc.,reported a $100,000 total tax expense for financial statement purposes in year 1.this tot...

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