In 2024, Dark Knight Inc. had taxable income of $125,000. Dark Knight had one permanent difference and one temporary difference. The permanent difference was $15,000 of non-taxable state and municipal bond income. The temporary difference was $30,000 of rent collected in 2024 and included in 2024 taxable income that was deferred until 2025 for book purposes. The tax rate is 20% for all years. After considering income tax expense, what was Dark Knight’s net income?

In 2024, Dark Knight Inc. had taxable income of $125,000. Dark Knight had one permanent difference and one temporary difference. The permanent difference was $15,000 of non-taxable state and municipal bond income. The temporary difference was $30,000 of rent collected in 2024 and included in 2024 taxable income that was deferred until 2025 for book purposes. The tax rate is 20% for all years. After considering income tax expense, what was Dark Knight’s net income?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 20CE

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In 2024, Dark Knight Inc. had taxable income of $125,000. Dark Knight had one permanent difference and one temporary difference. The permanent difference was $15,000 of non-taxable state and municipal bond income. The temporary difference was $30,000 of rent collected in 2024 and included in 2024 taxable income that was deferred until 2025 for book purposes. The tax rate is 20% for all years. After considering income tax expense, what was Dark Knight’s net income? Group of answer choices $106,000 $82,000 $91,000 $115,000
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