Business, 17.04.2020 23:30 fathimasaynas2384

McGee Company deducts insurance expense of $114,000 for tax purposes in 2008, but the expense is not yet recognized for accounting purposes. In 2009, 2010, and 2011, no insurance expense will be deducted for tax purposes, but $38,000 of insurance expense will be reported for accounting purposes in each of these years. McGee Company has a tax rate of 30% and income taxes payable of $89,200 at the end of 2008. There were no deferred taxes at the beginning of 2008. Assuming that income tax payable for 2009 is $123,200, the income tax expense for 2009 would be what amount?

a. $111,800
b. $123,200
c. $96,000
d. $134,600 .
e None of these answer choices is correct

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McGee Company deducts insurance expense of $114,000 for tax purposes in 2008, but the expense is not...

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