1.) Picker Co.s 2015 income statement reported $130,000 in income before provisions for income taxes. To compute the provision for federal income taxes, the following 20X5 data are provided:

Rent received in advance	$22,000
Income from exempt municipal bonds	$17,000
Depreciation deducted for income tax purposes	$18,000
Depreciation deducted for financial purposes	$10,000

If the alternative minimum tax provisions are ignored, what amount should Packer report as taxable income?

• $125,000
• $117,000
• $127,000
• $130,000

2.)

For the year ended December 31, 20X5, Paring Co. reported pretax financial income of $550,000. Its current tax expense was $144,000. Paring reported a difference between pretax financial statement income and taxable income. This difference is due to accelerated depreciation for income tax purposes. Parings effective income tax rate is 30% and Paring made estimated tax payments during 2015 of $75,000. What amount did Paring report as taxable income for 20X5?

$405,000

$475,000

$480,000

$550,000