Problem
Prancer Inc., earned pretax book net income of $1,485,000 in 2021. Prance acquired a depreciable asset that year, and first-year tax depreciation exceeded book depreciation by $148,500. Prance reported no other temporary or permanent booketax differences. The pertinent U.S. Federal corporate income tax rate is 21% and Prance earned an after-tax rate of return on capital of 4%.
If required, round your answers to the nearest dollar.
Compute Prance's current income tax benefit or expense for the year.