Continue with the results of Problem 37. Determine Rubio’s income tax expense and GAAP income for the year.
In problem Rubio, Inc., an accrual basis C corporation, reports the following amounts for the tax year. The applicable income tax rate is 30%. Compute Rubio’s taxable income.
Book income, including the items below ............ $80,000
Increase in book allowance for anticipated warranty costs .... 5,000
Interest income from City of Westerville bonds ........ 10,000
Bribes paid to Federal inspectors ............... 17,000