Question
Please help regarding book equivalents of taxable income, please explain calculations: 1-A7. Jones Company reported pretax book income of $405,000. Included in the computation were
Please help regarding book equivalents of taxable income, please explain calculations:
1-A7. Jones Company reported pretax book income of $405,000. Included in the computation were favorable temporary differences of $50,500, unfavorable temporary differences of $20,250, and favorable permanent differences of $40,250. Book equivalent of taxable income is:
Multiple Choice
- $445,250.
- $405,000.
- $364,750.
- $334,250.
1-B8. Angel Corporation reported pretax book income of $1,038,000. During the current year, the net reserve for warranties increased by $30,700. In addition, tax depreciation exceeded book depreciation by $109,500. Finally, Angel subtracted a dividends received deduction of $32,600 in computing its current-year taxable income. Angel's hypothetical tax expense in its reconciliation of its income tax expense is:
Multiple Choice
- $217,980.
- $211,533.
- $201,432.
- $194,985.
1-C9. TarHeel Corporation reported pretax book income of $1,006,000. During the current year, the net reserve for warranties increased by $100,300. In addition, tax depreciation exceeded book depreciation by $201,500. Finally, TarHeel subtracted a dividends received deduction of $51,200 in computing its current-year taxable income. TarHeel's accounting effective tax rate is:
Multiple Choice
- 21.00 percent.
- 19.93 percent.
- 18.86 percent.
- 17.79 percent.
1-D10. Green Corporation reported pretax book income of $1,030,000. During the current year, the net reserve for warranties increased by $51,500. In addition, tax depreciation exceeded book depreciation by $107,500. Finally, Green subtracted a dividends received deduction of $25,750 in computing its current-year taxable income. Green's cash tax rate is:
Multiple Choice
- 21.00 percent.
- 20.48 percent.
- 19.95 percent.
- 19.33 percent.
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