In 2025, Headland Corporation had pretax financial income of $167,000 and taxable income of $125,000. The...

Transcribed Image Text:

In 2025, Headland Corporation had pretax financial income of $167,000 and taxable income of $125,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 30%. Compute the amount to be reported as income taxes payable at December 31, 2025. Income taxes payable at December 31, 2025 $ In 2025, Headland Corporation had pretax financial income of $167,000 and taxable income of $125,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 30%. Compute the amount to be reported as income taxes payable at December 31, 2025. Income taxes payable at December 31, 2025 $

Answer rating: 100% (QA)

The amount of income taxes payable at December 31 2025 can be calculated as follows Firs... View the full answer