Question

greene co. has pretax book income for the year ended december 31, 2019 in the amount of 265000 and has a tax rate of 30%. Depreciation for tax purposes exceeds book depreciation by 14500 what should greene co. record as its federal income tax liability for 2018?A) $91,450B) $92,850C) $88,500D) $84,150

Answer 1

Pre-tax book income $265,000

Less depreciation additional charge $14,500

Taxable income $250,500

Tax liability at 30% = $75,150