Question
1) During its most recent accounting period, Conner Enterprises income before taxes was $728,000. In determining the income before taxes Conner included $42,000 in municipal
1) During its most recent accounting period, Conner Enterprises income before taxes was $728,000. In determining the income before taxes Conner included $42,000 in municipal bond interest. If Connors income tax rate is 30% and are no other book-tax differences, what amount of income tax would Connor owe for the accounting period?
$ 12,600
$205,800
$218.400
$231,000
In 2019, Solo reported Income before Depreciation and Income Tax of $720,000. In 2019, Depreciation Expense was $120,000 on its GAAP based income statement and $80,000 for income tax purposes. Solos income tax rate is still 40%. Which of the following would not be correct based upon 2019s recording of Solos income tax payment?
Decrease in Cash $256,000 (Income tax payment)
Decrease in Deferred Tax Liability $16,000
Increase in Income Tax Expense $240,000
Increase in Deferred Tax Liability of $16,000
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