Teri Inc has the following differences between book and tax basis of its assets an liabilities...
Teri Inc has the following differences between book and tax basis of its assets an liabilities at the end of 2000.
| Book Basis | Tax Basis | |
| Equipment | $400,000 | 340,000 |
| Estimated Warranty Liability | $200,000 | 0 |
The warranty will be settled in 2001.
If Teri Inc. has a taxable income of $520,000 in 2000, what is Teri's accounting income?
Homework Answers
| Taxable income | $520,000 |
| Equipment | $60,000 ($400,000-$340,000) |
| Estimated warranty liability | ($200,000) |
| Book income | $380,000 |
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