The following information is available for Pearl Corporation for 2019 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $36,800. This $36,800 difference will reverse equally over the years 2020–2023. 2. Deferral, for book purposes, of $20,200 of rent received in advance. The rent will be recognized in 2020. 3. Pretax financial income, $310,100. 4. Tax rate for all years, 20%. (a) Compute taxable income for 2019.
The following information is available for Pearl Corporation for 2019 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $36,800. This $36,800 difference will reverse equally over the years 2020–2023. 2. Deferral, for book purposes, of $20,200 of rent received in advance. The rent will be recognized in 2020. 3. Pretax financial income, $310,100. 4. Tax rate for all years, 20%. (a) Compute taxable income for 2019.
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 47P
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The following information is available for Pearl Corporation for 2019 (its first year of operations).
1. | Excess of tax |
|
2. | Deferral, for book purposes, of $20,200 of rent received in advance. The rent will be recognized in 2020. | |
3. | Pretax financial income, $310,100. | |
4. | Tax rate for all years, 20%. |
(a)
Compute taxable income for 2019.
Taxable income |
$enter Taxable income in dollars
|
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