Zurich Company reports pretax financial income of $84,270 for 2014. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $20,240. 2. Rent collected on the tax return is greater than rent earned on the income statement by $24,840. 3. Fines for pollution appear as an expense of $13,940 on the income statement. Zurich's tax rate is 40% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2014. Compute taxable income and income taxes payable for 2014.(Cost Account)

Zurich Company reports pretax financial income of $84,270 for 2014. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $20,240. 2. Rent collected on the tax return is greater than rent earned on the income statement by $24,840. 3. Fines for pollution appear as an expense of $13,940 on the income statement. Zurich's tax rate is 40% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2014. Compute taxable income and income taxes payable for 2014.(Cost Account)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...

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