Question
Tau Financials reported taxable income of $1,600,000. An audit revealed that the company failed to deduct $200,000 in qualifying business expenses and included $50,000 of
Tau Financials reported taxable income of $1,600,000. An audit revealed that the company failed to deduct $200,000 in qualifying business expenses and included $50,000 of non-deductible expenses in their calculations.
Requirement: Recalculate the taxable income and determine the correct tax liability at a corporate tax rate of 28%. Discuss the adjustments.
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Taxation Of Individuals And Business Entities 2015
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
6th Edition
978-1259206955, 1259206955, 77862368, 978-0077862367
