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Rex, Inc., is a domestic corporation. Relox, Inc., reported two permanent differences between book and taxable income earned $2,375 in tax-exempt municipal bond interest, and
Rex, Inc., is a domestic corporation. Relox, Inc., reported two permanent differences between book and taxable income earned $2,375 in tax-exempt municipal bond interest, and incurred $780 in nondeductible business meals expense. Rex's book income before taxi $4,800. Assume a 21% Federal cortex Provide the rate reconciliation, using both tax amounts and rates, Relix must include in its financial statement For dollar amounts, round to the nearest dollar and use rounded amounts in subsequent computations. For the percentage answers, round to four decimal places before converting to a percentage. For example, round 56329 to .5633 and enter as 56.33% Tax on book income at U.Statutory Dollars 1,008 Provision for income tax expense 673 Percentage 21
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