Yellow Rose Corporation reported pretax book income of $1,000,000.Tax depreciation exceeded book depreciation by $100,000.During the year Yellow Rose capitalized $50,000 into ending inventory under §263A.Capitalized inventory costs of $75,000 in beginning inventory were deducted as part of cost of goods sold on the tax return.Using a tax rate of 34%,compute Yellow Rose's taxes payable or refundable.

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The Answer of Yellow Rose Corporation reported pretax book income of $1,000,000.Tax depreciation exceeded book depreciation by $100,000.During the year Yellow Rose capitalized $50,000 into ending inventory under §263A.Capitalized inventory costs of $75,000 in beginning inventory were deducted as part of cost of goods sold on the tax return.Using a tax rate of 34%,compute Yellow Rose's taxes payable or refundable.

Yellow Rose Corporation Reported Pretax Book Income of $1,000,000