Detailed Answer
(c) 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
current portion is computed by multiplying taxable income by
the current enacted tax rate ($650,000 × 30% = $195,000). The
deferred portion is $30,000 ($100,000 temporary difference ×
30%). The estimated tax payments ($90,000) do not affect the
amount of tax expense, although the payments would decrease
taxes payable.