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In 2007, the first year of its operation, Admire Company accrued, for financial statement reporting. estimated losses on disposal of unused plant facilities of $50,000.
In 2007, the first year of its operation, Admire Company accrued, for financial statement reporting. estimated losses on disposal of unused plant facilities of $50,000. The facilities were sold in March 2008 and a $50,000 loss was recognized for tax purposes. Assuming that the enacted tax rate is 35% in 2007 and 30% in 2008, and that Admire taxable income is $300,000 in 2007, the 2007 income tax expense should be $100,000 $90,000 $87,500. None of these answer choices is correct. $105,000
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