Question
Rubio, Inc., an accrual basis C corporation, reports the following amounts for the tax year. The applicable income tax rate is 30%. Book income, including
Rubio, Inc., an accrual basis C corporation, reports the following amounts for the tax year. The applicable income tax rate is 30%. Book income, including the items below $87,500 Increase in book allowance for anticipated warranty costs 4,375 Interest income from City of Westerville bonds 8,750 Bribes paid to Federal inspectors 17,500 a. Indicate whether the following items create temporary or permanent differences. Increase in book allowance for anticipated warranty costs Interest income from City of Westerville bonds Bribes paid to Federal inspectors b. Rubio's taxable income is
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