Owl Inc.\'s income before taxes is $255,000, including $15,000 of municipal bond
ID: 2529792 • Letter: O
Question
Owl Inc.'s income before taxes is $255,000, including $15,000 of municipal bond interest income, $2,000 in City of Philadelphia parking tickets, and $5,000 in bank penalties for their late mortgage payments. If Owl's tax rate is 35%, what's income tax expense? $86,450 $84,700 $89,250 $93,800Owl Co. had income before taxes of $675,000 and a tax rate of 40% in their first year of operation. Included in this income is $5,000 of life insurance premiums that Owl can never deduct on their tax returns and depreciation expense of $185,000. Depreciation on Owl's tax return is $130,000. Which of the following will be included in Owl's year-end adjustments? Deferred tax liability of $20,000 Deferred tax asset of $20,000 Income tax payable of $294,000 Income tax expense of $270,000
Owl Inc.'s income before taxes is $255,000, including $15,000 of municipal bond interest income, $2,000 in City of Philadelphia parking tickets, and $5,000 in bank penalties for their late mortgage payments. If Owl's tax rate is 35%, what's income tax expense? $86,450 $84,700 $89,250 $93,800
Owl Co. had income before taxes of $675,000 and a tax rate of 40% in their first year of operation. Included in this income is $5,000 of life insurance premiums that Owl can never deduct on their tax returns and depreciation expense of $185,000. Depreciation on Owl's tax return is $130,000. Which of the following will be included in Owl's year-end adjustments? Deferred tax liability of $20,000 Deferred tax asset of $20,000 Income tax payable of $294,000 Income tax expense of $270,000
Owl Inc.'s income before taxes is $255,000, including $15,000 of municipal bond interest income, $2,000 in City of Philadelphia parking tickets, and $5,000 in bank penalties for their late mortgage payments. If Owl's tax rate is 35%, what's income tax expense? $86,450 $84,700 $89,250 $93,800
Owl Co. had income before taxes of $675,000 and a tax rate of 40% in their first year of operation. Included in this income is $5,000 of life insurance premiums that Owl can never deduct on their tax returns and depreciation expense of $185,000. Depreciation on Owl's tax return is $130,000. Which of the following will be included in Owl's year-end adjustments? Deferred tax liability of $20,000 Deferred tax asset of $20,000 Income tax payable of $294,000 Income tax expense of $270,000 Owl Co. had income before taxes of $675,000 and a tax rate of 40% in their first year of operation. Included in this income is $5,000 of life insurance premiums that Owl can never deduct on their tax returns and depreciation expense of $185,000. Depreciation on Owl's tax return is $130,000. Which of the following will be included in Owl's year-end adjustments? Deferred tax liability of $20,000 Deferred tax asset of $20,000 Income tax payable of $294,000 Income tax expense of $270,000
Explanation / Answer
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Particulars Amount Income before tax 255000 Less: Municipal Bond Interest(Exempt) 15000 240000 Add: Parking Tickets & bank Penalties(Fines or penalties are not tax dedeuctible) 7000 Income Before tax 247000 Tax Rate 35% Income Tax Expense(35% of 247000) 86450Related Questions
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