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Kappa Foods reported a taxable income of $1,000,000. An audit found that $100,000 in tax-deductible employee benefits were not deducted, and $50,000 in non-deductible entertainment
Kappa Foods reported a taxable income of $1,000,000. An audit found that $100,000 in tax-deductible employee benefits were not deducted, and $50,000 in non-deductible entertainment expenses were included in the calculations.
Requirement: Adjust the taxable income and calculate the correct tax liability assuming a corporate tax rate of 25%. Discuss the errors found.###question_divider###
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