accounting-(TCO B) K Corporation’s partial income statement after its first yea

QUESTION

3.(TCO B) K Corporation’s partial income statement after its first year of operations is as follows: Income before Income Taxes $3,750,000Income Tax expense Current $1,035,000 Deferred 67,500 __________ 1,102,500 __________Net Income $2,647,500K uses the straight-line method of depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The amount charged to depreciation expense on its books this year was $1,200,000. No other differences existed between book income and taxable income except for the amount of depreciation. Assuming a 30% tax rate, what amount was deducted for depreciation on the corporation’s tax return for the current year? (Points : 5)$1,200,000$1,425,000$1,500,000$1,800,000

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