Question
the following information is available for remmers Corporation for 2014. 1. depreciation reported on the tax return exceeded depreciation reported on the income statement by
the following information is available for remmers Corporation for 2014. 1. depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This difference will reverse in equal amounts of $30,000 over the years 2015 to 2018. 2. interest received on municipal bonds was $10,000. 3. rent collected in advance on January 1st, 2014, totaled $60,000 for a three 3-year period. Of this amount $40,000 was reported as unearned at December 31st, 2014 for book purposes. 4. the tax rates are 40% for 2014 and 35% for 2015 and subsequent years. 5. income taxes of $320,000 are due per the tax return for 2014. 6. no deferred taxes existed at the beginning of 2014. (b) compute pre-tax Financial income for 2014.
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