B is corrent. The current income tax liability is computed by multiplying taxable income by the current tax rate (30%). Taxable income is computed as income before taxes and depreciation less tax depreciation ($100,000 - $20,000 = $80,000). Therefore, the current income tax liability is $24,000 ($80,000 x 30%). Note that the temporary depreciation difference of $8,000 ($20,000 - $12,000) affects deferred taxes, not current taxes.
A is incorrect. The current income tax liability is computed by multiplying taxable income by the current tax rate (30%). Taxable income is computed as income before taxes and depreciation less tax depreciation ($100,000 - $20,000 = $80,000). Therefore, the current income tax liability is $24,000 ($80,000 x 30%). Note that the temporary depreciation difference of $8,000 ($20,000 - $12,000) affects deferred taxes, not current taxes.
A is incorrect. The current income tax liability is computed by multiplying taxable income by the current tax rate (30%). Taxable income is computed as income before taxes and depreciation less tax depreciation ($100,000 - $20,000 = $80,000). Therefore, the current income tax liability is $24,000 ($80,000 x 30%). Note that the temporary depreciation difference of $8,000 ($20,000 - $12,000) affects deferred taxes, not current taxes.
D is incorrect. The current income tax liability is computed by multiplying taxable income by the current tax rate (30%). Taxable income is computed as income before taxes and depreciation less tax depreciation ($100,000 - $20,000 = $80,000). Therefore, the current income tax liability is $24,000 ($80,000 x 30%). Note that the temporary depreciation difference of $8,000 ($20,000 - $12,000) affects deferred taxes, not current taxes.
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