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Over [174]
3 years ago
5

In 2017, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000. The difference is due to t

he use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the amount to be reported as income taxes payable at December 31, 2017.
Business
1 answer:
vfiekz [6]3 years ago
5 0

Answer:

The amount of income tax payable on December 31, 2017 amounts to $48,000

Explanation:

The income tax payable amount is computed as below:

Income tax payable = Taxable Income for the year × Tax rate for the year

                                 = $120,000 × 40%

                                 = $48,000

Therefore, the $48,000 will be reported as the amount of income taxable payable on December 31, 2017.

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