Dunn Co.’s 2006 income statement reported $90,000 income before provision for income taxes. To compute the provision for federal income taxes, the following 2006 data are provided:
|
Rent received in advance |
$16,000 |
|
|
Income from exempt municipal bonds |
20,000 |
|
|
Depreciation deducted for income tax purposes in excess of depreciation reported for financial statements purposes |
10,000 |
|
|
Enacted corporate income tax rate |
30 |
% |
If the alternative minimum tax provisions are ignored, what amount of current federal income tax liability should be reported in Dunn’s December 31, 2006 balance sheet?
- $18,000
- $22,800
- $25,800
- $28,800