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A-1 Company had pretax GAAP income of $50,000 for the tax year ended December 31, 2020. Required a. Determine taxable income given the following separate
A-1 Company had pretax GAAP income of $50,000 for the tax year ended December 31, 2020. Required a. Determine taxable income given the following separate situations. 1. Excess accelerated depreciation for tax purposes, $5,000 2. Unrealized holding gain on securities accounted for under FV-NI, $2,000 3. Unrealized holding loss on securities accounted for under FV-NI, $2,000 4. Rental receipts received in advance, $30,000 5. Litigation contingency accrual, $10,000 6. Six-month prepaid rent deposit, $12,000 b. Label each of the following items in part a as one of the following: 1. GAAP revenue before taxable revenue 2. Taxable revenue before GAAP revenue 3. GAAP expense before taxable expense 4. Taxable expense before GAAP expense (b) Classification (a) Taxable income 1 $ 2 $ 35 4 $ 4 4 4 5$ 6 $
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