The books of the Speedster Company for the year ended December 31, 2014, showed pretax income of
Question:
The books of the Speedster Company for the year ended December 31, 2014, showed pretax income of $295,000. In computing the taxable income for federal income tax purposes, the following timing differences were taken into account:
Depreciation deducted for tax purposes in excess of depreciation recorded on the books ................... $14,500
Income from installment sale reportable for tax purposes in excess of income recognized on the books .......... 11,500
What should Speedster record as its current federal income tax liability at December 31, 2014, assuming a corporate income tax rate of 30 percent?
A $80,700
B $87,600
C $89,400
D $84,700
show work,
Intermediate Accounting
ISBN: 978-1118300855
10th Canadian Edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy