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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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