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Problem: Module 8 Textbook Problem 3 Learning Objective: 8 - 3 Prepare a reconciliation of book and taxable income EFG, a calendar year, accrual basis

Problem: Module 8 Textbook Problem 3
Learning Objective: 8-3 Prepare a reconciliation of book and taxable income
EFG, a calendar year, accrual basis corporation, reported $479,900 net income after tax on its financial statements prepared in accordance with GAAP. The corporation's financial records reveal the following information:
EFG earned $10,700 on an investment in tax-exempt municipal bonds.
EFG's allowance for bad debts as of January 1 was $21,000. Write-offs for the year totaled $4,400, while the addition to the allowance was $3,700. The allowance as of December 31 was $20,300.
On August 7, EFG paid a $6,000 fine to a municipal government for a violation of a local zoning ordinance.
EFG's depreciation expense per books was $44,200, and its MACRS depreciation deduction was $31,000.
This is EFG's second taxable year. In its first taxable year, it recognized an $8,800 net capital loss. This year, it recognized a $31,00
EFG's federal income tax expense per books was $151,000.
Required:
a. Compute EFG's taxable income.
Complete this question by entering your answers in the tabs below.
Required A
Compute EFG's taxable income. (Do not round any intermediate division. Round your final answers to the nearest whole dollar amount. Enter your answers in whole dollars not in millions.)
\table[[,Amount],[Taxable income,]]
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