Question
For the year ending December 31, 2019, the RJ Corporation reported book income before taxes of $579,000. During 2019: RJ's book depreciation expense was $25,000
For the year ending December 31, 2019, the RJ Corporation reported book income before taxes of $579,000. During 2019: RJ's book depreciation expense was $25,000 greater than what was allowed for tax purposes due to a reversing difference; RJ accrued $17,750 of warranty expense which is not deductible until 2020. RJ recognized a $29,000 unrealized holding loss on an investment which is not deductible for tax purposes until it is sold. RJs book income included non-taxable municipal bond interest of $19,500. What was RJs 2019 income tax expense assuming a tax rate of 40%.
a. $252,500
b. $231,600
c. $223,800
d. $232,500
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started