The following information is available for Indigo Corporation for 2016 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $40,800. This $40,800 difference will reverse equally over the years 2017–2020. 2. Deferral, for book purposes, of $18,200 of rent received in advance. The rent will be recognized in 2017. 3. Pretax financial income, $298,300. 4. Tax rate for all years, 30%. What is the taxable income for 2016?
The following information is available for Indigo Corporation for 2016 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $40,800. This $40,800 difference will reverse equally over the years 2017–2020. 2. Deferral, for book purposes, of $18,200 of rent received in advance. The rent will be recognized in 2017. 3. Pretax financial income, $298,300. 4. Tax rate for all years, 30%. What is the taxable income for 2016?
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 47P
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The following information is available for Indigo Corporation for 2016 (its first year of operations).
1. | Excess of tax |
|
2. | Deferral, for book purposes, of $18,200 of rent received in advance. The rent will be recognized in 2017. | |
3. | Pretax financial income, $298,300. | |
4. | Tax rate for all years, 30%. |
What is the taxable income for 2016?
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