Differences between tax and accounting income
Course:- Accounting Basics
Reference No.:- EM13149087

Assignment Help >> Accounting Basics

Woody Corp. had taxable income of $8,000 in the current year. The amount of MACRS depreciation was $3,000 while the amount of depreciation reported in the income statement was $1,000. Assuming no other differences between tax and accounting income, Woody's pretax accounting income was:

A. $5,000.

B. $6,000.

C. $10,000.

D. $11,000.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Explain the goals of financial management. The description must include how earnings are valued, how shareholder wealth can be maximized, and how management decisions affect
The following information is extracted from Alpha Hospital balance sheet. Compute  Alpha current ratio and the number of days revenue in patient accounts receivable.
At the time of purchase, Aumont's balance sheet showed assets of $611,070, liabilities of $201,660, and owners' equity of $409,410. The fair value of Aumont's assets is esti
Francis Equipment Co. closes its books regularly on December 31, but at the end of 2012 it held its cash book open so that a more favorable balance sheet could be prepared f
Analysis reveals that a company had a net increase in cash of $22,310 for the current year. Net cash provided by operating activities was $20,100; net cash used in investing a
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense, Insurance Expense, Interest Pay
What are the advantages to the shareholders in a target entity that is acquired via taxable stock acquisition vs. a taxable acquisition of net assets? What are the advantage
Net income was $ 61,000 for the year. The accumulated depreciation balance increased by $14,000 over the year. There were no sales of fixed assets or changes in noncash curr