The following information is available for Remmers Corporation for 2012. No defe
ID: 2499380 • Letter: T
Question
The following information is available for Remmers Corporation for 2012.
No deferred taxes existed at the beginning of 2012.
What is the taxable income for 2012?
1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $122,400. This difference will reverse in equal amounts of $30,600 over the years 2013–2016. 2. Interest received on municipal bonds was $14,800. 3. Rent collected in advance on January 1, 2012, totaled $68,700 for a 3-year period. Of this amount, $45,800 was reported as unearned at December 31, 2012, for book purposes. 4. The tax rates are 40% for 2012 and 35% for 2013 and subsequent years. 5. Income taxes of $323,400 are due per the tax return for 2012. 6.No deferred taxes existed at the beginning of 2012.
What is the taxable income for 2012?
Explanation / Answer
Income Tax of 2012 (A) $323,400 Tax Rate - 40% Taxable Income (A / 40 X 100) $808,500 Add: Depreciaton Reveresed $30,600 Net taxable Income $839,100
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