BC Corporation computed a pretax financial income of $6,000,000 for the year ended December 31, 2019. In preparing the tax return, the following differences are noted between financial income and taxable income: Nontaxable revenue, $600,000; Nondeductible expense, $200,000 Provision for a warranty that was recognized as an expense in 2019 but deductible for tax when paid $300,000; Excess tax depreciation over financial depreciation; $250,000 Excess of financial revenue over tax revenue, $200,000. What is the total tax expense assuming the tax rate for 2019 is 32% and 2020 is 30%? Option A: $1,699,000 Option B: $1,789,000 Option C: $1,744,000
BC Corporation computed a pretax financial income of $6,000,000 for the year ended December 31, 2019. In preparing the tax return, the following differences are noted between financial income and taxable income: Nontaxable revenue, $600,000; Nondeductible expense, $200,000 Provision for a warranty that was recognized as an expense in 2019 but deductible for tax when paid $300,000; Excess tax depreciation over financial depreciation; $250,000 Excess of financial revenue over tax revenue, $200,000. What is the total tax expense assuming the tax rate for 2019 is 32% and 2020 is 30%? Option A: $1,699,000 Option B: $1,789,000 Option C: $1,744,000
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 56P
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ABC Corporation computed a pretax financial income of $6,000,000 for the year ended December 31, 2019. In preparing the tax return, the following differences are noted between financial income and taxable income:
Nontaxable revenue, $600,000; Nondeductible expense, $200,000 Provision for a warranty that was recognized as an expense in 2019 but deductible for tax when paid $300,000; Excess tax
What is the total tax expense assuming the tax rate for 2019 is 32% and 2020 is 30%?
Option A: $1,699,000
Option B: $1,789,000
Option C: $1,744,000
Option D: $1,792,000
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