hard · Financial Accounting assets

A firm has 400,000 of Pre-tax Book Income. It has20,000 of tax-exempt interest and 10,000 of non-deductible fines. Tax depreciation exceeds book depreciation by50,000.

Assuming a 21% tax rate, what is the total Income Tax Expense?

  1. $84,000
  2. $71,400
  3. $81,900
  4. $77,700

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