Hendrie Inc. reported earnings before income taxes of $3,675,000 in 20X9. The tax rate for this year is 34%.

Item

1. Golf club dues, $58,000
2. Depreciation expense, $69,500
3. Development costs incurred during year; capitalized for accounting purposes, $290,000
4. Warranty costs accrued during year, $49,000
5. Interest and penalty for late payment payroll taxes, $72,500
6. CCA, $560,000
7. Amortization of capitalized development costs, $29,000
8. Costs incurred during year for warranty work completed, $36,750

Required:

1. After adjusting for all of the items listed above, what is the taxable income?
2. What is the amount of income taxes payable?

Answer rating: 100% (QA)

Part 1 Taxable Income 28002500 Part 2 Tax Payable 34 9520850 As Development costs incur... View the full answer