raebruh3154
23.11.2019 •
Business
Cass corporation reported pretax book income of $10,000,000. during the current year, the reserve for bad debts increased by $100,000. in addition, tax depreciation exceeded book depreciation by $200,000. cass corporation sold a fixed asset and reported book gain of $50,000 and tax gain of $75,000. finally, the company received $250,000 of tax-exempt life insurance proceeds from the death of one of its officers. compute the company’s current income tax expense or benefit.
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Ответ:
$229,500
Explanation:
For computing the company’s current income tax expense or benefit, first we have to compute the taxable income which is shown below:
= Pre-tax book income + Increase in bad debt reserve - Excess tax depreciation + Excess tax gain over book gain - Tax-exempt life insurance proceeds
= $10,000,000 + $100,000 - $200,000 + $25,000 - $250,000
= $675,000
We assume the tax rate is 34%
So, the current income tax expense or benefit would be
= $675,000 × 34%
= $229,500
The Excess tax gain over book gain is computed below:
= $75,000 - $50,000
= $25,000
Ответ:
Proximity, convenience, and the lack of alternatives are all factors that can cause unhappy customers to return (and perhaps improve their opinion). However, competition is much fiercer when it comes to e-commerce