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Business, 15.04.2020 05:19 lnelson9127

In Year 1, Lobo Corp. reported for financial-statement purposes the following revenue and expenses that were not included in taxable income:Premiums on officers' life insurance under which the corporation is the beneficiary $5,000Interest revenue on qualified-state or municipal bonds $10,000Estimated future warranty costs to be paid in Year 2 and Year 3 $60,000Lobo's enacted tax rate for the current and future years is 30%. Lobo has paid income taxes of $170,000 for the three-year period ended December 31, Year 1. There were no temporary differences in prior years. The deferred tax benefit to be applied against current income tax expense isA. $21,000B. $19,500C. $22,500D. $18,000

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