The following information is available for Splish Corporation for 2020.1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $116,000. This difference will reverse in equal amounts of $29,000 over the years 2021–2024.2. Interest received on municipal bonds was $10,200.3. Rent collected in advance on January 1, 2020, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, 2020, for book purposes.4. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years.5. Income taxes of $312,000 are due per the tax return for 2020.6. No deferred taxes existed at the beginning of 2020. (a)Compute taxable income for 2020.Taxable income for 2020 $enter Taxable income for 2020 in dollars

Taxable income: Imposition of tax on income called taxable income. Taxes to be paid to Governments.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information is available for Splish Corporation for 2020.

1.		Depreciation reported on the tax return exceeded depreciation reported on the income statement by $116,000. This difference will reverse in equal amounts of $29,000 over the years 2021–2024.
2.		Interest received on municipal bonds was $10,200.
3.		Rent collected in advance on January 1, 2020, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, 2020, for book purposes.
4.		The tax rates are 40% for 2020 and 35% for 2021 and subsequent years.
5.		Income taxes of $312,000 are due per the tax return for 2020.
6.		No deferred taxes existed at the beginning of 2020.

(a)

Compute taxable income for 2020.

Taxable income for 2020

$enter Taxable income for 2020 in dollars

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