The following information has been obtained for the Gocker Corporation. Compute
ID: 2424295 • Letter: T
Question
The following information has been obtained for the Gocker Corporation.
Compute taxable income and income taxes payable for 2015.
Warning
Don't show me this message again for the assignment
Ok
Cancel
Open Show Work
Taxable income is expected in all future years.
1. Prior to 2014, taxable income and pretax financial income were identical. 2. Pretax financial income is $1,737,400 in 2014 and $1,444,400 in 2015. 3. On January 1, 2014, equipment costing $1,268,000 is purchased. It is to be depreciated on a straightline basis over 5 years for tax purposes and over 8 years for financial reporting purposes. (Hint: Use the half-year convention for tax purposes, as discussed in Appendix 11A.) 4. Interest of $63,900 was earned on tax-exempt municipal obligations in 2015. 5. Included in 2015 pretax financial income is an extraordinary gain of $202,400, which is fully taxable. 6. The tax rate is 38% for all periods. 7 Your answer is incorrect. Try again.Compute taxable income and income taxes payable for 2015.
Taxable income$
Income taxes payable$
Warning
Don't show me this message again for the assignment
Ok
Cancel
Click if you would like to Show Work for this question:
Open Show Work
.Taxable income is expected in all future years.
Explanation / Answer
taxable income for 2015:
pretax financial income $1444400
+ depriciation as per financials (8year) 158500
- depriciation as per tax (5 year) (253600)
- tax exempt interest (63900)
Taxable income $1285400
tax payable $488452
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.