Green Corporation reported pretax book income of $1,014,000. During the current year, the net reserve for...

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Green Corporation reported pretax book income of $1,014,000. During the current year, the net reserve for warranties increase

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Answer 1

Answer #1

Answer) 19.38 percent

Explanation:

Cash tax rate = Taxes payable / Pretax book income

Taxes payable = (Pretax book income + provision for warranties - depreciation in excess of books - dividends received deduction) x 21%

= (1014000 + 50700 - 103500 - 25350) x 21%

= 196528.5

Cash tax rate = 196528.5 / 1014000 = 19.38%

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Answer 2

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Green Corporation reported pretax book income of $1,014,000. During the current year, the net reserve for...

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Add Answer to: Green Corporation reported pretax book income of $1,014,000. During the current year, the net reserve for...

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Green Corporation reported pretax book income of $1,014,000. During the current year, the net reserve for...