Suppose a firm faces a risk that is both very high frequency…

Suppose a firm faces a risk that is both very high frequency and very high severity. Unfortunately, this risk is associated with an activity that is essential to its business operations, meaning the activity must be continued or the business simply will not be able to operate at all.  Which of the following risk management strategies should this firm utilize to manage this difficult loss exposure?

Morrisson, Inc., earns book net income before tax of $500,00…

Morrisson, Inc., earns book net income before tax of $500,000. In computing its book income, Morrisson deducts $50,000 more in warranty expense for tax purposes than is allowed for book purposes. Morrisson records no other temporary or permanent book-tax differences. Assuming that the U.S. tax rate is 21% and no valuation allowance is required, what is Morrisson’s current income tax expense reported on its GAAP financial statements?