Wilson Manufacturing's 2023 income statement showed pretax accounting income of $3,200,000. The following 2023 data are provided to compute the federal income tax liability: • Interest income from tax-exempt state bonds: $85,000 ⚫ Tax depreciation exceeds book depreciation: $175,000 ⚫ Estimated tax payments made during the year: $650,000 ⚫ Enacted corporate tax rate: 25% What amount of current federal income tax liability should be included in Wilson's December 31, 2023 balance sheet? A. $735,000 B. $800,000 C. $85,000 D. $650,000

Wilson Manufacturing's 2023 income statement showed pretax accounting income of $3,200,000. The following 2023 data are provided to compute the federal income tax liability: • Interest income from tax-exempt state bonds: $85,000 ⚫ Tax depreciation exceeds book depreciation: $175,000 ⚫ Estimated tax payments made during the year: $650,000 ⚫ Enacted corporate tax rate: 25% What amount of current federal income tax liability should be included in Wilson's December 31, 2023 balance sheet? A. $735,000 B. $800,000 C. $85,000 D. $650,000

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 18P: Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax...

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