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Strawberry Corporation, a calendar year accrual basis corporation, reported $ 5 million of net income after tax on its current year financial statements prepared in
Strawberry Corporation, a calendar year accrual basis corporation, reported $ million of net income after tax on its current year financial statements prepared in accordance with GAAP. In addition, the following information is available from Strawberry's books and records:
Federal income tax expense per books was $ million.
Strawberry incurred $ of meals and $ of entertainment expenses. Assume for tax purposes that the meal costs are deductible and that the entertainment costs are not deductible.
Strawberry sold two pieces of equipment used in its business for total sales proceeds of $ The equipment's original cost was $ million. Book depreciation prior to sale totaled $ million; tax depreciation totaled $ million.
Strawberry uses the reserve method of accounting for bad debts. Additions to the reserve during the year totaled $ Accounts receivable actually written off during the year totaled $
Strawberry's depreciation expense for book purposes totaled $ Tax depreciation computed under MACRS is $ million.
Determine Strawberry's taxable Income.
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