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Hendrie Inc. reported earnings before income taxes of $2,325,000 in 20X9. The tax rate for this year is 34%. Item a. Golf club dues, $22,000
Hendrie Inc. reported earnings before income taxes of $2,325,000 in 20X9. The tax rate for this year is 34%. Item a. Golf club dues, $22,000 b. Depreciation expense, $60,500 c. Development costs incurred during year, capitalized for accounting purposes, $110,000 d. Warranty costs accrued during year, $31,000 e. Interest and penalty for late payment payroll taxes, $27,500 f. CCA, $200,000 g. Amortization of capitalized development costs, $11,000 h. Costs incurred during year for warranty work completed, $23,250 Required: 1. After adjusting for all of the items listed above, what is the taxable income? Taxable income 2. What is the amount of income taxes payable? Income tax payable
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