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Delta Real Estate reported taxable income of $1,700,000. An audit found that $200,000 in tax-deductible repairs and maintenance costs were not deducted, and $50,000 in
Delta Real Estate reported taxable income of $1,700,000. An audit found that $200,000 in tax-deductible repairs and maintenance costs were not deducted, and $50,000 in non-deductible lobbying expenses were included in the calculations.
Requirement: Adjust the taxable income and calculate the correct tax liability assuming a corporate tax rate of 26%. Discuss the errors found.
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