For the year ended December 31, 2018, Pering Co. reported pretax financial income of $550,000. Its current
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For the year ended December 31, 2018, Pering Co. reported pretax financial income of $550,000. Its current tax expense (excluding deferred tax expense) was $144,000. Pering reported a difference between pretax financial statement income and taxable income. This difference is due to accelerated depreciation for income tax purposes. Pering’s effective income tax rate is 30% and Pering made estimated tax payments during 2018 of $75,000. What amount did Paring report as taxable income for 2018?
a). 405,000
b). 480,000
c). 475,000
d). 550,000
Related Book For
Principles of Managerial Finance
ISBN: 978-0133507690
14th edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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