FINANCIAL ACCOUNTING

For the year ended December $31,2023,$ and as part of the preparation of its annual

financial statements $($expected to be completed in March $2024),$ The Steiner Corporation

calculated earnings before taxes of $$240,000.=BT$

Then, to determine $2023$ taxable income for its returns to be filed with various taxing

authorities, the company had to consider the following tax$-$related circumstances:

In $2023,$ Steiner was permitted to deduct the remaining balance of a $$20,000$

charitable contribution that it had recorded as an expense in $2022$; the company

had been permitted to deduct only $$11,000$ for tax purposes in $2022.,2023=1,000$

In late $2023,$ federal authorities had notified Steiner's management that payments

of $$10,000$ in $2022$ and $$7,000$ in $2023,$ made to officials of various foreign

countries, were inappropriate under the terms of the Foreign Corrupt Practices Act.

not a differancex

During $2023,$ Steiner made payments of $$95,600$ to the taxing authorities for its

estimated taxes.

During $2023,$ the company invested in state$-$sponsored tax$-$exempt bonds and

received interest therefrom of $$5,000.$

The company wrote off uncollectible accounts receivable of $$31,000$ during $2023.$

Steiner estimated its bad debts expense for that year at $10\%$ of its sales of

$$190,000.$

During $2023,$ Steiner paid $$11,000$ to independent contractors to repair the

products sold to its customers and which were still under warranty. The

compensation of its own repairmen who worked on products under warranty was

$$7,000.$ Parts used in the repairs cost $$4,000.$ Its estimate of warranty expense for

$2023$ was $$28,000.$

In $2023,$ asset cost recovery permitted by tax rules $($$$41,000)$ was greater than

depreciation under GAAP $($$$27,000).$

Steiner incurred goodwill of $$150,000$ as the result of a purchase of a subsidiary

on January $2,2023.$ The company's write$-$off for impairment of goodwill under

GAAP for the year was $$6,000$; the tax authorities amortize goodwill on a straight$-$

line basis over $15$ years.

Prepare a schedule of taxable income for The Steiner Corporation for the year ended

December $31,2023.$