Question

Item 5 Item 5 Jones Company reported pretax book income of $413,000. Included in the computation were favorable temporary differences of $51,300, unfavorable temporary differences of $20,650, and favorable permanent differences of $40,650. Book equivalent of taxable income is:

Answer 1

Answer:

$453,650

Explanation:

Calculation for the Book equivalent of taxable income

Using this formula

Book equivalent of taxable income =Pretax book income+Favorable permanent differences

Let plug in the formula

Book equivalent of taxable income=$413,000 + $40,650

Book equivalent of taxable income=$453,650

Therefore the Book equivalent of taxable income is:$453,650