Randolph Company reported pretax net income from continuing operations of $1,010,500 and taxable income of $667,500. The book-tax difference of $343,000 was due to a $213,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $138,000 due to an increase in the reserve for bad debts, and a $268,000 favorable permanent difference from the receipt of life insurance proceeds. Randolph Company’s applicable tax rate is 34%.A. Compute Randolph Company’s current income tax expense. B. Complete the reconciliation of Randolph Company’s effective tax rate with its hypothetical tax rate of 34%C. Compute Randolph Company’s effective tax rate. D. Compute Randolph Company’s deferred income tax expense or benefit.

A. Current income tax expense = $226,950

B. Reconciliation of effective tax rate with hypothetical tax rate gives an effective tax rate of 24.98%.

C. Effective tax rate = 24.98%

D. Deferred income tax expense is $25,500

Explanation:

A. Compute Randolph Company’s current income tax expense.

Current income tax expense = (Pretax net income from continuing operations - Favorable temporary difference relating to depreciation + Unfavorable temporary difference - Favorable permanent difference) * Applicable tax rate = ($1,010,500 - $213,000 + $138,000 - $268,000) * 34% = $226,950

B. Complete the reconciliation of Randolph Company’s effective tax rate with its hypothetical tax rate of 34%

Hypothetical tax rate = Applicable tax rate = 34%

Income tax expense = Pretax net income from continuing operations * Applicable tax rate = $1,010,500 * 34% = $343,570

Tax benefit from Favorable permanent difference = Favorable permanent difference * Applicable tax rate = $268,000 * 34% = $91,120

Income tax provision = Income tax expense - Tax benefit from Favorable permanent difference = $343,570 - $91,120 = $252,450

Rate of tax benefit from Favorable permanent difference = (Tax benefit from Favorable permanent difference / Pretax net income from continuing operations) * 100 = ($91,120 / $1,010,500) * 100 = 9.02%

Therefore, we have reconciliation of effective tax rate with hypothetical tax rate as follows:

Effective tax rate = Hypothetical tax rate - Rate of tax benefit from Favorable permanent difference = 34% - 9.02% = 24.98%

C. Compute Randolph Company’s effective tax rate.

Effective tax rate = (Total income provision / Pretax net income) * 100 (1)

Where:

Total income provision = Current income tax expense + Deferred income tax expense = $226,950 + $25,500 = $252,450

Pretax net income = $1,010,500

Substituting the values into equation (1), we have:

Effective tax rate = ($252,450 / $1,010,500) * 100 = 24.98%

D. Compute Randolph Company’s deferred income tax expense or benefit.

Deferred income tax expense or benefit = (-Favorable temporary difference relating to depreciation + Unfavorable temporary difference) * Applicable tax rate = (-$213,000 + $138,000) * 34% = -$25,500

Since the answer is negative, it implies that it is a Deferred income tax expense of $25,500

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.