The books of Curtis Company for the year ended December 31, 2006, showed income of $360,000 before provision for income tax. In computing the taxable income for federal income tax purposes, the following differences were taken into account:
|
Depreciation deducted for tax purposes in excess of depreciation recorded on the books |
$16,000 |
|
Royalty income reported for tax purposes in excess of royalty income recognized on the books |
12,000 |
Assuming a corporate income tax rate of 40%, what should Curtis record as its current federal income tax liability at December 31, 2006?
- $137,600
- $142,400
- $144,000
- $145,600