33) Gosling, Incorporated, a calendar year, accrual basis corporation, reported $756,000 net income after tax on...

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33) Gosling, Incorporated, a calendar year, accrual basis corporation, reported $756,000 net income after tax on its financial statements prepared in accordance with GAAP. The corporation's financial records reveal the following information: . . . . Gosling earned $3,500 on an investment in tax-exempt municipal bonds. Gosling received an advance payment of rent this year for $25,000. This amount was not included in book income. Gosling's depreciation expense per books was $72,000, and its MACRS depreciation deduction was $105,000. Gosling recorded $58,000 of business meals (not provided by a restaurant) and $27,000 of entertainment expense for book purposes. Gosling's federal income tax expense per books was $220,000. a. Compute Gosling's taxable income and regular tax liability. b. Prepare a Schedule M-1, page 6, Form 1120, reconciling Gosling's book and taxable income. 33) Gosling, Incorporated, a calendar year, accrual basis corporation, reported $756,000 net income after tax on its financial statements prepared in accordance with GAAP. The corporation's financial records reveal the following information: . . . . Gosling earned $3,500 on an investment in tax-exempt municipal bonds. Gosling received an advance payment of rent this year for $25,000. This amount was not included in book income. Gosling's depreciation expense per books was $72,000, and its MACRS depreciation deduction was $105,000. Gosling recorded $58,000 of business meals (not provided by a restaurant) and $27,000 of entertainment expense for book purposes. Gosling's federal income tax expense per books was $220,000. a. Compute Gosling's taxable income and regular tax liability. b. Prepare a Schedule M-1, page 6, Form 1120, reconciling Gosling's book and taxable income.

Answer rating: 100% (QA)

a Compute Goslings taxable income and regular tax liability 1 Start with net income after tax 756000 2 Add back taxexempt interest income 3500 3 Add b... View the full answer