Question

rowen, inc. had pre-tax accounting income of $2,700,000 and a tax rate of 20% in 2025, its first year of operations. in 2025, the company had the following transactions: received rent from jane, co. for 2026 $ 96,000 municipal bond income 120,000 depreciation for tax purposes in excess of book depreciation 60,000 installment sales profit to be taxed in 2026 162,000 what is the amount of income taxes payable for rowen for 2025?

Answer 1

The amount of income taxes payable for Rowen in 2025 is $540,000.

Step-by-step explanation:

The amount of income taxes payable for Rowen in 2025 can be calculated by multiplying the pre-tax accounting income by the tax rate. In this case, the pre-tax accounting income is $2,700,000 and the tax rate is 20%. To find the amount of income taxes payable, we can calculate: $2,700,000 x 0.20 = $540,000. Therefore, the amount of income taxes payable for Rowen in 2025 is $540,000.