Question: A company uses the accrual method and reports $600,000 for income tax expense for the year. The company does not have any transactions that would

A company uses the accrual method and reports $600,000 for income tax expense for the year. The company does not have any transactions that would create permanent differences. Assume that the statutory tax rate is 25% and this rate is constant from year to year.

Required:

How much was the company’s pre-tax income?

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