Johnson Manufacturing reported pretax book income of $750,000 in 2024. The following items were included in the computation: • Favorable temporary differences: $80,000 ⚫ Unfavorable temporary differences: $30,000 • • Favorable permanent differences: $70,000 What is the book equivalent of taxable income? a) $820,000 b) $750,000 c) $680,000 d) $700,000
Johnson Manufacturing reported pretax book income of $750,000 in 2024. The following items were included in the computation: • Favorable temporary differences: $80,000 ⚫ Unfavorable temporary differences: $30,000 • • Favorable permanent differences: $70,000 What is the book equivalent of taxable income? a) $820,000 b) $750,000 c) $680,000 d) $700,000
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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Financial accounting
Transcribed Image Text:Johnson Manufacturing reported pretax book income of
$750,000 in 2024. The following items were included in
the computation:
•
Favorable temporary differences: $80,000
⚫ Unfavorable temporary differences: $30,000
•
•
Favorable permanent differences: $70,000
What is the book equivalent of taxable income?
a) $820,000
b) $750,000
c) $680,000
d) $700,000
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