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Ann Corporation reported pretax book income of $1,920,000. Included in the computation were favorable temporary differences of $345,000, unfavorable temporary differences of $221,000, and favorable
Ann Corporation reported pretax book income of $1,920,000. Included in the computation were favorable temporary differences of $345,000, unfavorable temporary differences of $221,000, and favorable permanent differences of $115,000. Compute the company's book equivalent of taxable income. Use this number to compute the company's total income tax provision or benefit. Book equivalent of taxable income Total income tax provision or benefit Burcham Corporation reported pretax book income of $707,500. Tax depreciation exceeded book depreciation by $565,000. In addition, the company received $272,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $62,000. Compute the company's book equivalent of taxable income. Use this number to compute the company's total income tax provision or benefit. Book equivalent of taxable income Total income tax provision or benefit
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