Compute taxable income and income tax payable


Sagehen Enterprises reports pretax financial income of $80,000 for 2012. The following cause taxable income to be different from pretax financial income:

a) Depreciation on the tax return is greater than depreciation on the income statement by $15,000..

b) Rent collected on the tax return is $25,000 greater than rent earned on the income statement..

c) Fines reported on the income statement were $10,000..

d) The current tax rate is 30%. There are no deferred taxes at the beginning of 2012.

Compute taxable income and income tax payable for 2012. Which of the differences are temporary, and which are permanent?

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Accounting Basics: Compute taxable income and income tax payable
Reference No:- TGS043689

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