Question
When a firm reports a nondeductible fine as an expense they calculate income tax expense as: pre-tax book income multiplied by the income tax rate.
When a firm reports a nondeductible fine as an expense they calculate income tax expense as:
| pre-tax book income multiplied by the income tax rate. | ||
| pre-tax book income plus the fine amount multiplied by the income tax rate. | ||
| pre-tax book income less the fine amount multiplied by the income tax rate. |
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Principles of Auditing and Other Assurance Services
Authors: Ray Whittington, Kurt Pany
20th edition
77729145, 978-1259295430, 1259295435, 978-0077729141
