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Narrow's taxable income is computed as follows: Book income before tax $3,000,000 Net permanent differences 350,000 Net temporary differences (525,000) Taxable income $2,825.000 Using a
Narrow's taxable income is computed as follows:
Book income before tax | $3,000,000 |
Net permanent differences | 350,000 |
Net temporary differences | (525,000) |
Taxable income | $2,825.000 |
Using a 21% rate, compute Narrows tax expense per books and tax payable.
Select one:
a. Tax expense per books $630,000; tax payable $593,250.
b. Tax expense per books $703,500; tax payable $593,250.
c. Tax expense per books $593,250; tax payable $630,000.
d. . None of the above
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