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SWFT Essntl Tax Individ/Bus Entities 2020

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 4BCRQ

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Question

Hello tutor can you answer this account query?

For its first year of operations, Stewart Corporation's
reconciliation of pretax accounting income to taxable
income is as follows:
Pretax accounting income
Permanent difference
Temporary difference-Depreciation
Taxable income
Stewart's tax rate is 36%.
$ 3,50,000
($ 14,900)
$ 3,35,100
($ 19,700)
$3,15,400
What should Steward report as its income tax expense
for its first year of operations?
A. $113,544
B. $122,137
C. $120,636
D. $126,000

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