Assuming a 30 tax rate what amount was deducted for


Question - Blossom Corporation's partial income statement after its first year of operations is as follows:

Income before income taxes $3726000

Income tax expense  Current $1015000

Deferred       882001103200

Net income $2622800

Blossom 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 $2780000. 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?

$2486000

$1117800

$2780000

$3074000

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Accounting Basics: Assuming a 30 tax rate what amount was deducted for
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