Additional information necessary for determining taxable income:
The depreciation expense for the year under MACRS was $64,000The amount of accounts receivable written off as uncollectible during the year was $22,000BoxCo owns 24% of the corporation from which it received dividends
 
Required:
Determine the permanent book-tax differences (BTDs)
Organize the Effective Tax Rate ReconciliationFor homework:
Enter the company's Income Statement on an Excel spreadsheet
On a separate Excel worksheet (within the same document), organize a template for the Effective Tax Rate Reconciliation
Use this spreadsheet to complete the Effective Tax Rate Reconciliation assuming the same facts except that:
BoxCo contributed $15,000 to a political action committee
Federal Tax Rate is 40%
The state Tax Rate is 6%

BoxCo, Inc., a domestic corporation has a U.S. corporate tax rate of 35% and a state tax rate of 5%. The corporation's net income for financial reporting purposes for the current year is calculated as follows: Revenues: Service Revenue Dividend Income Municipal bond interest Total Revenue Expenses: Salaries and Wages expense Rent expense Depreciation expense Bad debt expense Meals expense Advertising expense Utilities expense Other operating expenses Total Expenses Net Income Before Income Tax Provision $ 800,000 20,000 50,000 $ 350,000 60,000 14,000 30,000 40,000 8,000 12,000 36,000 $870,000 550,000 $320,000