Question
In its first year of operations, Markos & Winchester's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 300,000
In its first year of operations, Markos & Winchester's reconciliation of pretax accounting income to taxable income is as follows:
| Pretax accounting income | $ | 300,000 |
|
|
| Permanent difference |
| (15,000 | ) |
|
|
|
| 285,000 |
|
|
| Temporary difference-depreciation |
| (20,000 | ) |
|
| Taxable income | $ | 265,000 |
|
|
Markos & Winchester's tax rate is 27.5%, and you may assume that no estimated taxes have been paid. What should Markos & Winchester's report as income tax payable for its first year of operations?
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Managerial Accounting The Cornerstone Of Business Decision-making, , (6 Months)
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
7th Edition
1337115924, 9781337115926
