Question

Bryce Corporation has pretax accounting income of $100,000. Bryce has interest on municipal bonds of $7,000. Depreciation for tax purposes is $5,000 greater than depreciation for financial reporting purposes. Bad debt expense was $3,000, and bad debts for tax purposes was $1,000. Calculate taxable income. Multiple choice question. $87,000 $99,000 $101,000 $90,000

Answer 1

$90,000

Step-by-step explanation:

It is given that :

The pretax accounting income of Bryce Corporation 100,000

The interest on the municipal bonds - 7,000

The depreciation - 5,000

The difference in bad debt expense (3000-1000) +2,000

So the total income of Bryce Corporation $ 90,000