Franton Co., a calendar year, accrual basis corporation, reported $2,076,000 net income after tax on its current year financial statements prepared in accordance with GAAP. The corporation's financial records reveal the following information.Federal tax expense per books was $660,000.
Franton received $22,400 of dividends from its investment in Microsoft and General Motors stock.
Bad debt expense was $12,900, and write-offs of uncollectible accounts receivable totaled $16,300.
Book depreciation was $110,890, and MACRS depreciation was $94,700.
Franton paid a $50,000 fine to the City of Albany for illegal trash dumping.
Compute Franton's taxable income and regular tax liability.
What will be an ideal response?
Taxable income: $2,787,590 = $2,076,000 + $660,000 - $11,200 DRD - $3,400 additional bad debt expense + $16,190 nondeductible book depreciation + $50,000 nondeductible fine. Regular tax liability: $585,394.
You might also like to view...
In ethic marketing it is important to present one overall message theme, but it should then be tailored to fit the needs and values of each ethnic group
Indicate whether the statement is true or false
The average number of times a dollar of money is used for transactions over the course of a year is referred to as the
A. money multiplier. B. velocity of money. C. money growth rate. D. extent of exchange.
Liabilities are defined as probable future sacrifices of economic benefits arising from present obligations of a company to provide services or assets in the future as defined by the FASB
Indicate whether the statement is true or false
Lying on her hospital bed alone one night, Phyllis grabs a pen and paper. With the last of her strength, she wrote her last will and testament leaving all her worldly possessions to her next-door neighbor, Aaron. This type of will is
a. a nuncupative will. b. a disinherited children's share will. c. a holographic will. d. illegal in all states.