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For the current year, Elephant Corp. had $90M in pretax accounting income. This included warranty expense of $3M and $10M in depreciation expense according to
For the current year, Elephant Corp. had $90M in pretax accounting income. This included warranty expense of $3M and $10M in depreciation expense according to US GAAP rules. According to tax rules, none of the warranty expenses are deductible in the current year's tax return and tax depreciation amounted to $20M in total for the year, $10M more than US GAAP depreciation expense. In the absence of other temporary or permanent differences, what was Elephant's taxable income for the year? O $80 million. O $73 million. O $90 million. $83 million
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