Exercise 19-2 The following information is available for Marigold Corporation for 2016 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $40,400. This $40,400 difference will reverse equally over the years 20172020. 2. Deferral, for book purposes, of $19,900 of rent received in advance. The rent will be recognized in 2017.

3. Pretax financial income, $284,700. 4. Tax rate for all years, 40%. Compute taxable income for 2016. Taxable income $

Exercise 19-2 The following information is available for Marigold Corporation for 2016 (its first year of operations) 1. Excess of tax depreciation over book depreciation, $40,400. This $40,400 difference will reverse equally over the years 2017-2020 2. Deferral, for book purposes, of $19,900 of rent received in advance. The rent will be recognized in 2017. 3. Pretax financial income, $284,700. 4. Tax rate for all years, 4096. Compute taxable income for 2016. Taxable income