Question
Ramos Corp.'s books showed pretax financial income of $1,500,000 for the year ended December 31, 2008. In the computation of federal income taxes, the following
Ramos Corp.'s books showed pretax financial income of $1,500,000 for the year ended December 31, 2008. In the computation of federal income taxes, the following data were considered:
Gain on an involuntary conversion: $650,000 (Ramos has elected to replace the property within the statutory period using total proceeds.)
Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes 100,000
Federal estimated tax payments, 2008: 125,000
Enacted federal tax rate, 2008: 30%
What amount should Ramos report as its current federal income tax liability on its December 31, 2008 balance sheet?
a. $100,000
b. $130,000
c. $225,000
d. $255,000
Do not copy from Chegg and explain the answer
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