Pretax financial income for Lake Inc. is $300,000, and its taxable income is $100,000 for 2013. Its

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Pretax financial income for Lake Inc. is $300,000, and its taxable income is $100,000 for 2013. Its only temporary difference at the end of the period relates to a $70,000 difference due to excess depreciation for tax purposes. If the tax rate is 40% for all periods, compute the amount of income tax expense to report in 2013. No deferred income taxes existed at the beginning of the year.

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Intermediate Accounting

ISBN: 978-0470587287

14th Edition

Authors: kieso, weygandt and warfield.

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