The floowing information relates to Franklin Freightways for its first year of operations (data in millions of dollars):
Pretax accounting Income: $200
Pretax accounting income included:
Overwight fines (no deductible for tax purposes) 5
Depreciation expense 70
Depreciation in the tax return usin MARCS 110
1.) Which of the following must Franklin Freightways disclose related to the income tax expense reported in the income statement, ($ in millions)
A.) Only the current portion of tax epense of $66
B.) Only the total tax expense of $82
C.) Both the current portion of the tax expense of $66 and the deferred portion of the tax expense of $16
D.) None of the above
2.) Franklin’s net income ($ in millions) is:
A.) $118
B.) $119.4
C.) $134
D.) $124
3.) Franklin’s taxable income ($ in millions) is:
A.) $160
B.) $110
C.) $40
D.) $165