Book equivalent of taxable income


Smith Company reported pretax book income of $400,000 in 2011. Included in the computation were favorable temporary differences of $50,000, unfavorable temporary differences of $20,000, and favorable permanent differences of $40,000. Book equivalent of taxable income is:

A. $440,000

B. $400,000

C. $360,000

D. $330,000

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Accounting Basics: Book equivalent of taxable income
Reference No:- TGS059895

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