Compute taxable income

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Problem - The following information is available for Remmers Corporation in 2010:

1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This difference will reverse in equal amounts of $30,000 over the years 2011-2014.

2. Interest received on municipal bonds was $10,000.

3. Rent collected in advance on January 1, 2010 totaled $60,000 for a 3 year period. Of this amount, $40,000 was reported as unearned at December 31, for book purposes.

4. Tax rates are 40% for 2010 and 35% for 2011 and subsequent years.

5. Income taxes of $320,000 are due per the tax return for 2010.

6. No deferred taxes existed at the beginning of 2010.

a) Compute taxable income for 2010.

 

Reference no: EM131767109

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