Reference no: EM133903180

Problem

You are a new associate at the accounting firm and the tax manager has asked you to calculate Coco Corporation's taxable income now that the audit department has completed the audit and has issued the GAAP based financial statements. Here is some of the information provided to us. Coco Corporation operates as a C Corporation. The Net income per book ported the following information for the tax year 202X at $350,000 (before taxes). 1. Federal Income Tax Expense (book basis): $50,000 2. Tax-Exempt Interest Income: $10,000 3. Interest Expense on Loan to Purchase Tax-Exempt Bonds: $5,000 4. Life Insurance Proceeds (corporate-owned policy, key executive): $25,000 5. Depreciation per Books: $40,000 6. Depreciation per Tax Return: $60,000 7. Charitable Contributions per Books: $15,000 8. Charitable Contributions allowed for Tax Purposes: $12,000 9. Entertainment Expenses (100% deducted for book purposes): $20,000 (Only 50% deductible for tax purposes) While we are not yet completing the Corporate Tax return, we do want to estimate the taxable income for the year. Get the instant assignment help. Using the information above, prepare an Excel spreadsheet to reconcile Coco Corp's book income to taxable income. Be sure to account for permanent and temporary differences in your reconciliation.