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Greenville Industries uses the accrual basis to account for all sales transactions. Sales for 2022 total $510,000. Included in this amount is $60,000 in receivables
Greenville Industries uses the accrual basis to account for all sales transactions. Sales for 2022 total $510,000. Included in this amount is $60,000 in receivables from sales on installment. Installment sales are considered revenue for book purposes, but not for tax purposes. Operating expenses total $180,000 and are treated the same for book and tax purposes. Assuming a 15% tax rate, what is Greenville's income tax payable?
The correct answer is 49,500
How was the answer 49,500 calculated?
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