Rho Holdings

• Rho Holdings reported taxable income of $2,700,000.
• $300,000 in advertising costs were capitalized.
• $150,000 in interest income was not reported.
• A tax credit of $100,000 for employee training programs was missed.

Requirement: Adjust the taxable income and compute the correct tax liability at a corporate tax rate of 29%. Highlight and correct the errors.

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