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PLZ HELP ASAP IM LIMITED ON TIME - Genesis, Incorporated, is a calendar year, accrual basis corporation. The business reported $852,000 net income after tax
PLZ HELP ASAP IM LIMITED ON TIME
- Genesis, Incorporated, is a calendar year, accrual basis corporation. The business reported $852,000 net income after tax on its financial statements prepared in accordance with GAAP. The corporation's financial records also show the following information: Genesis earned $7,500 on an investment in tax-exempt municipal bonds. Genesis received an advance payment of rent this year for $30,000. This amount was not included in book income. Genesis had depreciation expense per books was $73,000, and its MACRS depreciation deduction was $125,000. Genesis recorded $70,000 of business meals (not provided by a restaurant) and $24,000 of entertainment expense for book purposes. Genesis had federal income tax expense per books of $200,000. a. Compute the taxable income and regular tax liability for Genesis. b. Prepare a reconciliation between the book and taxable income for Genesis Step by Step Solution
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