Jefferson Industries reported pretax accounting income of $240,000, but due to a permanent difference, taxable income is only $180,000. Assuming a tax rate of 30%, the income statement should report net income of: a. $54,000 b. $72,000 c. $168,000 d. $186,000
Jefferson Industries reported pretax accounting income of $240,000, but due to a permanent difference, taxable income is only $180,000. Assuming a tax rate of 30%, the income statement should report net income of: a. $54,000 b. $72,000 c. $168,000 d. $186,000
Chapter22: S Corporations
Section: Chapter Questions
Problem 16CE
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Question
Jafferson industries reported pretex accounting income
Transcribed Image Text:Jefferson Industries reported pretax accounting income of $240,000, but due
to a permanent difference, taxable income is only $180,000. Assuming a tax
rate of 30%, the income statement should report net income of:
a. $54,000
b. $72,000
c. $168,000
d. $186,000
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