Question
Pi Technologies reported taxable income of $1,300,000. An audit found that $200,000 in research and development expenses were not deducted, and $100,000 in non-deductible lobbying
Pi Technologies reported taxable income of $1,300,000. An audit found that $200,000 in research and development expenses were not deducted, and $100,000 in non-deductible lobbying 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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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
