Oriole Co. at the end of 2020, its first year of operations,
prepared a reconciliation between pretax financial income and
taxable income as follows:
Pretax financial income | $2505000 |
Estimated litigation expense | 3505000 |
Extra depreciation for taxes | (5514000) |
Taxable income |
$ 496000 |
The estimated litigation expense of $3505000 will be deductible in
2021 when it is expected to be paid. Use of the depreciable assets
will result in taxable amounts of $1838000 in each of the next 3
years. The income tax rate is 20% for all years.
Income taxes payable is
A. $401800.
B. $0.
C. $601800.
D. $99200.
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Oriole Co. at the end of 2020, its first year of operations, prepared a reconciliation between...
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Brief Exercise 107
Pole Co. at the end of 2018, its first year of
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paid
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