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Arte-miy333 [17]
3 years ago
10

Bumble Bee Co. had taxable income of $7,000, tax depreciation of $5,000, book depreciation of $2,000, and accrued warranty expen

se of $400 on the books although no warranty work was performed. What is Bumble Bee's pretax accounting income?
Business
1 answer:
NeX [460]3 years ago
8 0

Answer:

$9,600

Explanation:

Calculation for Bumble Bee's pretax accounting income

Using this formula

Pretax accounting income=Taxable income-Accrued warranty expense+(Tax depreciation-Book depreciation)

Let plug in the formula

Pretax accounting income=$7,000-$400+($5,000-$2,000)

Pretax accounting income=$7,000-$400+$3,000

Pretax accounting income=$9,600

Therefore Bumble Bee's pretax accounting income will be $9,600

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