Differently on the tax return and in the accounting records


Frey corporation income statement for the year ended december 31,2005, shows pretax income of $1,000,000. the following items are treated differently on the tax return and in the accounting records:

  • tax return accounting records
  • rent income $70,000 $120,000
  • depreciation expense 270,000 220,000
  • premiums on officers life insurance _ 90,000

Assume that freys tax rate for 2005 is 30%. what is the amount of income tax payable for 2004?

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Accounting Basics: Differently on the tax return and in the accounting records
Reference No:- TGS0704658

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