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14 Tuna Corporation reported pretax book income of $1,017,000. During the current year, the net reserve for warranties increased by $33,500. In addition, book depreciation
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Tuna Corporation reported pretax book income of $1,017,000. During the current year, the net reserve for warranties increased by $33,500. In addition, book depreciation exceeded tax depreciation by $117,000. Finally, Tuna subtracted a dividends received deduction of $23,500 in computing its current-year taxable income. Book equivalent of taxable income is: Multiple Choice $1,040,500 $1,144,000. $993,500. $1,167,500. Smith Company reported pretax book income of $405,000. Included in the computation were favorable temporary differences of $51,000, unfavorable temporary differences of $20,500, and favorable permanent differences of $40,500. Smith's deferred income tax expense or benefit would be: Multiple Choice net deferred tax benefit of $6,405 net deferred tax expense of $15,015. net deferred tax expense of $6,405. net deferred tax benefit of $15,015Step by Step Solution
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