Question
Mconnell's Advertising Companys pretax financial income for 2019 is $691,000. The following financial transactions occurred during the year creating a difference between pretax financial income
Mconnell's Advertising Companys pretax financial income for 2019 is $691,000.
The following financial transactions occurred during the year creating a difference between pretax financial income and taxable income (pretax financial income reflects the proper accrual of these items):
- Interest received on a municipal bond totaled $50,000
- A customer prepaid $80,000 for advertising services for 2019 and 2020.
- Mconnell paid a tax penalty of $5,000 for the late filing of 2018 taxes.
- Mconnell prepaid business insurance for 2019 and 2020 of $100,000.
- Equipment was depreciated using the straight-line method for $10,000. MACRS depreciation expense for 2019 was $15,000.
Calculate Mconnell's Advertising Companys taxable income for 2019.
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Knowledge Audit Complete Self Assessment Guide Practical Tools For Self Assesment
Authors: Gerardus Blokdyk
1st Edition
0655199837, 978-0655199830
