Lantz Ltd. reported earnings before income taxes of $580,000 in 20X5. The company had expensed $29,000 of golf club dues that were not tax-deductible. There was tax-free dividend revenue of $12,000. Warranty expense was $44,000. Depreciation was $124,000, while CCA was $203,000. Warranty claims paid were $37,000. The tax rate for this year is 20%.

Required: Calculate taxable income and income tax payable.

Answer rating: 100% (QA)

Answer To calculate the taxable income and income tax payable we need to adjust the reported earning... View the full answer