1. For accounting purposes, Wavy Inc. reported $15,000 of municipal bond revenue in 2016. It also spent $12,000 in radio station filing penalties paid to the FCC in the same year. What is the total book tax difference associated with these items? Is it favorable or unfavorable? How much of the total adjustment is permanent and how much is temporary?

2. In 2013, Clark Traders Inc. reported taxable income of $100,000. In 2014, he reported taxable income of $15,000. In 2015, he reported taxable income of $95,000. In 2016, Clark Traders experienced a net operating loss of $25,000. What amount of refund can Clark Traders receive if you do not choose to waive the refund (see corporate income tax schedule)?

Answer rating: 100% (QA)

1 For accounting purposes Wavy Inc reported 15000 of municipal bond revenue in 2016 It also spent 12... View the full answer