Pretax accounting income is computed to be $117,000 after including the effects of the appropriate items from the following information: Depreciation taken for tax purposes $93,000 Depreciation taken for accounting 16,000 Contributions to the pension plan 22,000 Pension expense 18,000 Interest revenue on municipal bonds 7,600 Penalty for late payment of income taxes 12,000 Unearned revenue for deposits received in advance 33,000 Unrealized gain on available-for-sale securities 8,000 Fine assessed for pollution of a river 25,000 Using the setup below, compute taxable income Pretax accounting income 99,000 Depreciation difference Pension cost difference Interest revenue Penalty Unearned revenue Unrealized gain Fine Taxable income
Pretax accounting income is computed to be $117,000 after including the effects of the appropriate items from the following information: Depreciation taken for tax purposes $93,000 Depreciation taken for accounting 16,000 Contributions to the pension plan 22,000 Pension expense 18,000 Interest revenue on municipal bonds 7,600 Penalty for late payment of income taxes 12,000 Unearned revenue for deposits received in advance 33,000 Unrealized gain on available-for-sale securities 8,000 Fine assessed for pollution of a river 25,000 Using the setup below, compute taxable income Pretax accounting income 99,000 Depreciation difference Pension cost difference Interest revenue Penalty Unearned revenue Unrealized gain Fine Taxable income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pretax accounting income is computed to be $117,000 after including the effects of the appropriate items from the following information:
Depreciation taken for tax purposes $93,000- Depreciation taken for accounting 16,000
- Contributions to the pension plan 22,000
- Pension expense 18,000
- Interest revenue on municipal bonds 7,600
- Penalty for late payment of income taxes 12,000
- Unearned revenue for deposits received in advance 33,000
- Unrealized gain on available-for-sale securities 8,000
- Fine assessed for pollution of a river 25,000
Using the setup below, compute taxable income
Pretax accounting income 99,000
Depreciation difference
Pension cost difference
Interest revenue
Penalty
Unearned revenue
Unrealized gain
Fine
Taxable income
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