ABC is a sole proprietorship owned by Clark. The company’s records show the following:
Sales Revenue 275,000
Interest on State of Kansas bonds 5,000
Operating Expenses 145,000
Depreciation – book purposes 17,000
Depreciation – tax purposes 22,000
Loss on sale of truck to Clark’s granddaughter 4,000
Fines to the U.S. govt. for violation of emission standards 15,000
Compute ABC’s net income per books before tax.
Compute ABC’s taxable income.