Question: Zurich company reports pre-tax Financial income of $70,000 for 2014. The following items cause taxable income to be different than pre-tax Financial income
1. Depreciation on the tax return is greater than depreciation on the income statement by $16,000.
2. Rent collected on the tax return is greater than rent earned on the income statement by $22,000.
3. Fines for pollution appear as an expense of $11,000 on the income statement Zurich tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2014.
a. Compute taxable income and income taxes payable for 2014.