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Southlawn Inc.'s taxable income is computed as follows: Book income before tax Net permanent differences Net temporary differences Taxable income $2,405,600 (512,000) (189,000) $1,704,600 Using
Southlawn Inc.'s taxable income is computed as follows: Book income before tax Net permanent differences Net temporary differences Taxable income $2,405,600 (512,000) (189,000) $1,704,600 Using a 21% rate, compute Southlawn's tax expense per books and tax payable. Multiple Choice Tax expense per books $397,656; tax payable $357,966. Tax expense per books $357966; tax payable $397,656. Tax expense per books $612,570; tax payable $357,966. None of the above
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