Question
Pi Real Estate reported taxable income of $2,100,000. An audit revealed that the company failed to deduct $300,000 in qualifying business expenses and included $150,000
Pi Real Estate reported taxable income of $2,100,000. An audit revealed that the company failed to deduct $300,000 in qualifying business expenses and included $150,000 of non-deductible expenses in their calculations.
Requirement: Recalculate the taxable income and determine the correct tax liability at a corporate tax rate of 27%. Discuss the adjustments.
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
