Answer:
$80,000
Explanation:
The taxable Income of the Haag Corp can be calculated using the following formula:
Taxable income=Pretax accounting income-income exempt for tax purposes-excess depreciation allowed for tax purposes.
Applying the above formula to the given question:
Pretax accounting income: $1,250,000
Income from exempt municipal bond: ($50,000)
Excess depreciation deducted for tax purposes ($100,000)
Taxable income $1,100,000
Tax on taxable income(30%*1,100,000) $330,000
Less: Federal income tax already paid ($250,000)
Tax Liability to be included in Hagg's balance sheet $80,000
