Acme Corporation prepares its financial statements. They use the accrual-method for both book and tax purposes. The company provided the following information relating to its 2021 year-end: Book-Tax Differences Book Permanent/ Favorable! Amount Temporary Unfavorable Life insurance proceeds due to CEO's death $500,000 Revenue from sales (for both book and tax) 3,000,000 Premiums paid on key-person life insurance 28,000 *Charitable contributions 750,000 (Tax deduction is limited to 10% of taxable income before the charitable deduction). Cost of goods sold (for both book and tax) 1,500,000 Interest income earned on tax-exempt bonds 80,000 Interest expense paid on loan to purchase tax-exempt bonds 65,000 Rental income received and earned in 2021 35,000 Rental income received in 2020 but earned in 2021 40,000 Rental income received in 2021 but not earned by earn-end 70,000 Depreciation (Tax depreciation $95,000) 70,000 Lobbying fees paid to energy industry 85,000 Business meal (restaurant) $30,000 (subject to CAA). 52,000 entertainment $22,000 April June accrued bonus (book) payable October 1 150,000 Increase to allowance for D/A (Bad debt write-offs $158,000) $170,000 Net capital loss 182,000 Federal income tax expense-Y/E, 2021 >>>>>calculate Complete the table above. Identify each book-tax difference as either permanent or temporary and either favorable or unfavorable. If no difference please indicate N/A in both columns. Acme Corporation prepares its financial statements. They use the accrual-method for both book and tax purposes. The company provided the following information relating to its 2021 year-end: Book-Tax Differences Book Permanent/ Favorable! Amount Temporary Unfavorable Life insurance proceeds due to CEO's death $500,000 Revenue from sales (for both book and tax) 3,000,000 Premiums paid on key-person life insurance 28,000 *Charitable contributions 750,000 (Tax deduction is limited to 10% of taxable income before the charitable deduction). Cost of goods sold (for both book and tax) 1,500,000 Interest income earned on tax-exempt bonds 80,000 Interest expense paid on loan to purchase tax-exempt bonds 65,000 Rental income received and earned in 2021 35,000 Rental income received in 2020 but earned in 2021 40,000 Rental income received in 2021 but not earned by earn-end 70,000 Depreciation (Tax depreciation $95,000) 70,000 Lobbying fees paid to energy industry 85,000 Business meal (restaurant) $30,000 (subject to CAA). 52,000 entertainment $22,000 April June accrued bonus (book) payable October 1 150,000 Increase to allowance for D/A (Bad debt write-offs $158,000) $170,000 Net capital loss 182,000 Federal income tax expense-Y/E, 2021 >>>>>calculate Complete the table above. Identify each book-tax difference as either permanent or temporary and either favorable or unfavorable. If no difference please indicate N/A in both columns
