During fiscal year 2012, Dioubate Cie earned $10,000 of interest revenue on an investment in a tax-free municipal bond. Which of the following items would be increased by the municipal bond revenue? (check all that apply) Pre-Tax Income

During fiscal year 2012, Dioubate Cie earned $10,000 of interest revenue on an investment in a tax-free municipal bond. Which of the following items would be increased by the municipal bond revenue? (check all that apply) Pre-Tax Income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

During fiscal year 2012, Dioubate Cie
earned $10,000 of interest revenue on an
investment in a tax-free municipal bond.
Which of the following items would be
increased by the municipal bond revenue?
(check all that apply)
Pre-Tax Income
Income Tax Expense
Taxable Income
Income Tax Payable
Deferred Tax Liabilities
Adjust
Draw

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