Epsilon Logistics

• Epsilon Logistics reported taxable income of $1,500,000.
• $250,000 in income from overseas subsidiaries was not included.
• $100,000 in charitable contributions were not deducted.
• A tax credit of $50,000 for renewable energy investments was overlooked.

Requirement: Adjust the taxable income and compute the correct tax liability at a corporate tax rate of 27%. Highlight the errors and correct them.

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