1.) Picker Co.'s 2015 income statement reported $130,000 in income before provisions for income taxes. To compute the provision for federal income taxes, the following 20X5 data are provided:
Rent received in advance $22,000
Income from exempt municipal bonds $17,000
Depreciation deducted for income tax purposes $18,000
Depreciation deducted for financial purposes $10,000
If the alternative minimum tax provisions are ignored, what amount should Packer report as taxable income?
$125,000
$117,000
$127,000
$130,000
2.) For the year ended December 31, 20X5, Paring Co. reported pretax financial income of $550,000. Its current tax expense was $144,000. Paring reported a difference between pretax financial statement income and taxable income. This difference is due to accelerated depreciation for income tax purposes. Paring's effective income tax rate is 30% and Paring made estimated tax payments during 2015 of $75,000. What amount did Paring report as taxable income for 20X5?
$405,000
$475,000
$480,000
$550,000