Pretax accounting income


The Indy Company had taxable income of $12,000 during 2008. Indy used accelerated depreciation for tax purposes ($3,400) and straight-line depreciation for accounting purposes ($2,000). Assuming Indy had no other temporary differences, what would the company's pretax accounting income be for 2008?

a. $6,600

b. $13,400

c. $17,400

d.$1,400

 

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Accounting Basics: Pretax accounting income
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