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I am trying to figure out Taxable Income for the following question. I have used 117,300 + 24,500 - 11,900 + 13,100 + 4,800 = 147,800 x $0.30 =...
I am trying to figure out Taxable Income for the following question. I have used 117,300 + 24,500 - 11,900 + 13,100 + 4,800 = 147,800 x $0.30 = $44,340
The computer is saying this is incorrect. What did I forget? Depreciation?
At the beginning of 2016, Norris Company had a deferred tax liability of $6,300, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income tax rate is 30% for 2015 and 2016, but in 2015 Congress enacted a 35% tax rate for 2017 and future years.
Norris's accounting records show the following pretax items of financial income for 2016: income from continuing operations, $117,300 (revenues of $351,200 and expenses of $233,900); gain on disposal of Division F, $24,500; loss from operations of discontinued Division F, $11,900; and prior period adjustment, $13,100, due to an error that understated revenue in 2015. All of these items are taxable; however, financial depreciation for 2016 on assets related to continuing operations exceeds tax depreciation by $4,800. Norris had a retained earnings balance of $162,900 on January 1, 2016, and declared and paid cash dividends of $30,100 during 2016.