Problem
Relix, Inc., is a domestic corporation. Relix reported two permanent differences between book and taxable income. It earned $2,375 in tax-exempt municipal bond interest, and it incurred $780 in nondeductible meals and entertainment expense. Relix's book income before tax is $4,800. Assume a 34% corporate tax rate.
What is the provision for income tax expense? Both dollar amount and percentage.