Question
Tau Solutions reported taxable income of $1,500,000. An audit found that $200,000 in tax-deductible employee training costs were not deducted, and $50,000 in non-deductible entertainment
Tau Solutions reported taxable income of $1,500,000. An audit found that $200,000 in tax-deductible employee training costs were not deducted, and $50,000 in non-deductible entertainment expenses were included in the calculations.
Requirement: Adjust the taxable income and calculate the correct tax liability assuming a corporate tax rate of 26%. Discuss the errors found.###question_divider###
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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
