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Bedford had this info at the end of 2015, its first year of operations: Pretax book income $800,000 estimated litigation expense 200,000 excess of tax
Bedford had this info at the end of 2015, its first year of operations: Pretax book income $800,000
estimated litigation expense 200,000
excess of tax over book depreciation 300,000
interest income on municipal bonds 100,000 No other permanent or temporary differences exist. The litigation item will be paid in 2016. The depreciation will reverse evenly over the next three years. Tax rate is 30%. Future net income is probable. The 12/31/15 Income Tax Payable is:
Select one: a. $60,000 b. $150,000 c. $180,000 d. $240,000 e. $120,000
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