Question
In its first year of operations, Poli Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 310,000 Permanent
In its first year of operations, Poli Corporation's reconciliation of pretax accounting income to taxable income is as follows:
| Pretax accounting income | $ | 310,000 | ||
| Permanent difference | (14,800 | ) | ||
| 295,200 | ||||
| Temporary difference-depreciation | (20,700 | ) | ||
| Taxable income | $ | 274,500 | ||
Poli's tax rate is 25%. Assume that no estimated taxes have been paid. What should Poli report as income tax payable for its first year of operations?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
