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Intermediate Accounting II 19) Following is selected data pertaining to the financial statements of Taxaruity Corp. Pretax financial income (Year 3) 650,000 Tax rate (for
Intermediate Accounting II
19) Following is selected data pertaining to the financial statements of Taxaruity Corp. Pretax financial income (Year 3) 650,000 Tax rate (for Years 3 thru 6) 25% Depreciation expense (less than MACRS by $35,000) 50,000 Nondeductible violations 15,000 Estimated tax payments throughout Year 3 65,000 Advanced payment received Year 3 from a customer for services provided Year 4 45,000 Estimated warranties on product sold Year 3 to be serviced over the next 2 years 70,000 Tax-exempt interest on municipal bonds 30,000 Rent for year 4 paid for in Year 3 24,000 Deferred Tax Asset reported on year 2 balance sheet 3,000 Instructions: Calculate the following (show work in the grid below). Enter the final answers in the boxes provided here. (2 points each; total of 10 points) 1 Taxable income 2 Income tax payable 3 Current income taxes 4 Total income taxes on the income statement 5 Deferred tax asset on the balance sheetStep by Step Solution
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