ABC Co. had pretax accounting income of $400,000 this year. This included an estimated expense of $5,000
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Question:
ABC Co. had pretax accounting income of $400,000 this year. This included an estimated expense of $5,000 for bad debts, which is not deductible on their tax return until they identify the uncollectible amounts. The accounting income also includes $1,000 interest earned on municipal bonds.
What is ABC's taxable income if these are the only book-tax differences?
What is ABC's tax payable to the government this year, if the tax rate is 35%?
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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