Gravel, inc., earns book net income before tax of $600,000. gravel puts into service a depreciable asset this year, and first year tax depreciation exceeds book depreciation by $120,000. gravel has recorded no other temporary or permanent book-tax differences. assuming that the u. s. tax rate is 21%, what is gravel’s current income tax expense reported on its gaap financial statements?

Evan company reports net income of $232,000 each year and declares an annual cash dividend of $100,000. the company holds net assets of $2,130,000 on january 1, 2017. on that date, shalina purchases 40 percent of evan's outstanding common stock for $1,066,000, which gives it the ability to significantly influence evan. at the purchase date, the excess of shalina’s cost over its proportionate share of evan’s book value was assigned to goodwill. on december 31, 2019, what is the investment in evan company balance (equity method) in shalina’s financial records?