The accounting income of Cullumber Corporation and its taxable income for the years 2023 to 2026 are as follows: Year Accounting Income 2023 2024 2025 2026 $466,000 429,000 396,000 468,000 Taxable Income $300,000 297,000 307,000 649,000 Tax Rate 25% 30% 30% 30% The change in the tax rate from 25% to 30% was not enacted until early in 2024. Accounting income for each year includes an expense of $41,000 that will never be deductible for tax purposes. The remainder of the difference between accounting income and taxable income in each period is due to one reversing difference for the depreciation of property, plant, and equipment. No deferred taxes existed at the beginning of 2023.
The accounting income of Cullumber Corporation and its taxable income for the years 2023 to 2026 are as follows: Year Accounting Income 2023 2024 2025 2026 $466,000 429,000 396,000 468,000 Taxable Income $300,000 297,000 307,000 649,000 Tax Rate 25% 30% 30% 30% The change in the tax rate from 25% to 30% was not enacted until early in 2024. Accounting income for each year includes an expense of $41,000 that will never be deductible for tax purposes. The remainder of the difference between accounting income and taxable income in each period is due to one reversing difference for the depreciation of property, plant, and equipment. No deferred taxes existed at the beginning of 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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i.3
Transcribed Image Text:The accounting income of Cullumber Corporation and its taxable income for the years 2023 to 2026 are as follows:
Year Accounting Income
2023
2024
2025
2026
$466,000
429,000
396,000
468,000
Taxable Income
$300,000
297,000
307,000
649,000
Tax Rate
25%
30%
30%
30%
The change in the tax rate from 25% to 30% was not enacted until early in 2024.
Accounting income for each year includes an expense of $41,000 that will never be deductible for tax purposes. The remainder of the
difference between accounting income and taxable income in each period is due to one reversing difference for the depreciation of
property, plant, and equipment. No deferred taxes existed at the beginning of 2023.
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