B is corrent. ASC Topic 740 states that income tax expense must be reported in two components: the amount currently payable (current portion) and the tax effects of temporary differences (deferred portion). The amount currently payable, or current income tax expense, is computed by multiplying taxable income by the current enacted tax rate ($129,000 x 40% = $51,600).
A is incorrect. ASC Topic 740 states that income tax expense must be reported in two components: the amount currently payable (current portion) and the tax effects of temporary differences (deferred portion). The amount currently payable, or current income tax expense, is computed by multiplying taxable income by the current enacted tax rate ($129,000 x 40% = $51,600).
C is incorrect. ASC Topic 740 states that income tax expense must be reported in two components: the amount currently payable (current portion) and the tax effects of temporary differences (deferred portion). The amount currently payable, or current income tax expense, is computed by multiplying taxable income by the current enacted tax rate ($129,000 x 40% = $51,600).
D is incorrect. ASC Topic 740 states that income tax expense must be reported in two components: the amount currently payable (current portion) and the tax effects of temporary differences (deferred portion). The amount currently payable, or current income tax expense, is computed by multiplying taxable income by the current enacted tax rate ($129,000 x 40% = $51,600).
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