Question: Kantner, Inc., a domestic corporation, reported two permanent differences between book and taxable income. It earned $ 7 , 8 0 0 in tax -

Kantner, Inc., a domestic corporation, reported two permanent differences between book and taxable income. It earned $7,800 in tax-exempt municipal bond interest, and reported $850 of nondeductible entertainment expenses. Kantner's book income before tax is $50,000. Assume a 21% Federal corporate tax rate, no state or foreign taxes, and no need for a valuation allowance.

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