Question - The Ambrosia Corporation's lead accountant shows the following info: On Jan 1, 2012, Ambrosia purchased a bottling machine for $800000.
A) Straight-line basis depreciation for 5 years for tax purposes
B) Half year convention for 8 years for financial reporting (See Appendix 11A.)
C) Tax- exempt municipal bonds yielded interest of $150000 in 2013.
D) Pretax financial income is $2300000 in 2012 and $2400000 in 2013.
E) The company recognized an extraordinary gain of $150000 in 2013 (which is fully taxable).
F) Taxable income is expected in future years with an expected tax rate of 35%.
Required: Compute taxable income and income taxes payable for 2013.