A reconciliation of pretax financial statement income to taxable income is shown below for Fieval Industries for the year ended December 31, 2018, its first year of operations. The income tax rate is 40%. Pretax accounting income (income statement) $ 300,000 Interest revenue on municipal securities (15,000 ) Warranty expense in excess of deductible amount 25,000 Depreciation in excess of financial statement amount (70,000 ) Taxable income (tax return) $
A reconciliation of pretax financial statement income to taxable income is shown below for Fieval Industries for the year ended December 31, 2018, its first year of operations. The income tax rate is 40%. Pretax accounting income (income statement) $ 300,000 Interest revenue on municipal securities (15,000 ) Warranty expense in excess of deductible amount 25,000 Depreciation in excess of financial statement amount (70,000 ) Taxable income (tax return) $
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 3RE: In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During...
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A reconciliation of pretax financial statement income to taxable income is shown below for Fieval Industries for the year ended December 31, 2018, its first year of operations. The income tax rate is 40%. |
|
|
|
|
Pretax accounting income (income statement) |
$ |
300,000 |
|
|
Interest revenue on municipal securities |
|
(15,000 |
) |
|
Warranty expense in excess of deductible amount |
|
25,000 |
|
|
|
|
(70,000 |
) |
|
Taxable income (tax return) |
$ |
240,000 |
|
|
What amount(s) should Fieval report related to
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