In 2022, Sam Corp was in its second year of operations, having had a net operating loss (NOL) of $100,000 in its first year. This NOL represented the only book-tax difference in its first year. Its second year of operations had the following items of income and deductions:

Service Revenue $200,000

Product Sales $800,000

Municipal bond income $25,000

COGS ($400,000)

Interest Expense ($50,000)

Tax Depreciation ($200,000)

Book Depreciation ($100,000)

Wage Expense ($200,000)

Advertising Expense ($50,000)

Bad Debt Expense (book) ($25,000)

Bad Debt Expense (tax) ($15,000)

Fine by OSHA ($10,000)

Directions: 

Using an Excel Spreadsheet, please calculate both book and taxable income for 2022.

Answer rating: 100% (QA)

ANSWER Sure I can help you with that Here are the steps to calculate both book and taxable income fo... View the full answer