Munoz Corp.\'s books showed pretax financial income of $2,700,000 for the year e

Question

Munoz Corp.'s books showed pretax financial income of $2,700,000 for the year ended December 31, 2015. In the computation of federal income taxes, the following data were considered:

What amount should Munoz report as its current federal income tax liability on its December 31, 2015 balance sheet?

ain on an involuntary conversion $1,170,000 (Munoz has elected to replace the property within the statutory
     period using total proceeds.) Depreciation deducted for tax purposes in excess of depreciation
     deducted for book purposes 180,000 Federal estimated tax payments, 2015 225,000 Enacted federal tax rate, 2015 30%

Explanation / Answer

Pre Tax Financial Income = 27,00,000

(-) Gain on involuntary conversion = 11,70,000

(-) Depreciation = 1,80,000

Net Financial income 13,50,000

Total Tax Liability 405000 (13,50,000 * 30%)

(-) Estimated Tax Payments 225000

Balance Outstanding Liability of Munoz Corp. 180000.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.