Question
: Gosling, Inc., a calendar year, accrual basis corporation, reported $756,000 net income after tax on its financial statements prepared in accordance with GAAP. The
:
Gosling, Inc., a calendar year, accrual basis corporation, reported $756,000 net income after tax on its financial statements prepared in accordance with GAAP. The corporation's financial records reveal the following information: Gosling earned $478,000 from a qualified domestic production activity. Gosling earned $3,500 on an investment in tax-exempt municipal bonds. Gosling's depreciation expense per books was $72,000, and its MACRS depreciation deduction was $105,000. Gosling recorded $58,000 of business meals and entertainment expense for book purposes. Gosling's federal income tax expense per books was $440,000. Compute Gosling's taxable income and regular tax liability.
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