Cass Corporation reported pretax book income of $9,490,000. During the current year, the reserve for bad debts increased by $140,000. In addition, tax depreciation exceeded book depreciation by $360,000. Cass Corporation sold a fixed asset and reported book gain of $66,250 and tax gain of $96,000. Finally, the company received $300,000 of tax-exempt life insurance proceeds from the death of one of its officers. Compute the company’s current income tax expense or benefit. (Round your final answer to nearest whole dollar amount. Amounts to be deducted should be indicated by a minus sign.) Pretax book income Favorable temporary differences Unfavorable temporary differences favorable permanent differences taxable income Current income tax expense

Hafnaoui Company reported pretax net income from continuing operations of $1,077,500 and taxable income of $657,500. The book–tax difference of $420,000 was due to a $252,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $86,000 due to an increase in the reserve for bad debts, and a $254,000 favorable permanent difference from the receipt of life insurance proceeds A compute hafnaoui company current income tax expense b. Compute Hafnaoui Company's deferred income tax expense or (benefit). c. Compute Hafnaoui Company's effective tax rate. d. Provide a reconciliation of Hafnaoui Company's effective tax rate with its hypothetical tax rate of 21 percent. Note: Amounts to be deducted should be indicated by a minus sign. Round your percentages to 2 decimal places. ETR Reconsiliation (in$) Income Tax Expense at 21% Tax (Benefit/Expense) From Permanent Difference Income Tax Provision ETR Reconciliation (in %) Hypothetical Income Tax Rate 21 % Tax (Benefit/Expense) From permanent Difference % Effective Tax Rate %

You plan to enhance your company's technology infrastructure by investing $57,000 in a new software system. This software will be depreciated using the straight-line method over 8 years to a terminal book value of 4,000. Given your firm's marginal corporate tax rate of 29%, what is the value of the software's depreciation tax shield in the first year of operation?

Last year Cole Furnaces had $5 million in operating income (EBIT). The companyhad a net depreciation expense of $1 million and an interest expense of $1 million; itscorporate tax rate was 40%. The company has $14 million in operating current assetsand $4 million in operating current liabilities; it has $15 million in net plant andequipment. It estimates that it has an after-tax cost of capital of 10%. Assume thatCole’s only noncash item was depreciation.a. What was the company’s net income for the year?b. What was the company’s net cash flow?c. What was the company’s net operating profit after taxes (NOPAT)?d. Calculate net operating working capital and total net operating capital for thecurrent year.e. If total net operating capital in the previous year was $24 million, what was thecompany’s free cash flow (FCF) for the year?f. What was the company’s Economic Value Added (EVA)?

A company reports net income of $9,700 for the year. During the year, the company reports an $1,140 loss from retirement of notes and a gain of $1,710 from the sale of equipment. Also, depreciation expense is $3,480. The only change in current assets and current liabilities was a $570 increase in inventory.Compute net cash provided by operating activities using the indirect method.Note: Amounts to be deducted should be indicated with a minus sign.

Saginaw Inc. completed its first year of operations with a pretax loss of $742,500. The tax return showed a net operating loss of $896,500 that the company will carry forward. The $154,000 book-tax difference results from excess tax depreciation over book depreciation. Management has determined that they should record a valuation allowance equal to the net deferred tax asset. Assume the current tax expense is zero. b. Prepare the journal entry to record the deferred tax consequences for recognition of the current year NOL before considering the valuation allowance. C prepare the journal entry to record deferred tax consequences of valuation allowance D prepare the journal entry to record deferred tax consequences of depreciation book-tax differences