Following is selected data pertaining to the financial statements of Taxaruity Corp. Pretax financial income (Year...

 

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Following is selected data pertaining to the financial statements of Taxaruity Corp. Pretax financial income (Year 3) Tax rate (for Years 3 thru 6) Depreciation expense (less than MACRS by $25,000) 650,000 30% 50,000 Nondeductible violations 15,000 Estimated tax payments throughout Year 3 Advanced payment received Year 3 from a customer for services provided Year 4 Estimated warranties on product sold Year 3 to be serviced over the next 2 years Tax-exempt interest on municipal bonds Rent for year 4 paid for in Year 3 Deferred Tax Liability reported on year 2 balance sheet 65,000 35,000 70,000 30,000 24,000 3,000 Instructions: Calculate the following (show work in the grid below). Enter the final answers in the boxes provided here. (2 points each; total of 10 points) 1 Taxable income 2 Income tax payable 3 Current income taxes 4 Total income taxes on the income statement 5 Deferred tax asset on the balance sheet Following is selected data pertaining to the financial statements of Taxaruity Corp. Pretax financial income (Year 3) Tax rate (for Years 3 thru 6) Depreciation expense (less than MACRS by $25,000) 650,000 30% 50,000 Nondeductible violations 15,000 Estimated tax payments throughout Year 3 Advanced payment received Year 3 from a customer for services provided Year 4 Estimated warranties on product sold Year 3 to be serviced over the next 2 years Tax-exempt interest on municipal bonds Rent for year 4 paid for in Year 3 Deferred Tax Liability reported on year 2 balance sheet 65,000 35,000 70,000 30,000 24,000 3,000 Instructions: Calculate the following (show work in the grid below). Enter the final answers in the boxes provided here. (2 points each; total of 10 points) 1 Taxable income 2 Income tax payable 3 Current income taxes 4 Total income taxes on the income statement 5 Deferred tax asset on the balance sheet

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Ans 1 Taxable Income Taxable Income Formula Gross Sales Cost of Goods So... View the full answer