Clark Corporation has income per books before tax of $1,500,000.In computing income per books,Clark included $7,000 interest income from tax-exempt municipal bonds and deducted $10,000 for business meals and entertainment expenses,$50,000 for depreciation expense using the straight-line method and $15,000 accrued for bad debt expense using the allowance method.It actually wrote off only $9,000 in bad debts this year and its tax depreciation expense was $80,000.What is Clark Corporation's taxable income?

Question

Quizplus · Accepted Answer

$1,500,000 - $7,000 + ($10,000 x .5)- ($80,000 - $50,000)+ ($15,000 - $9,000)= $1,474,000

Clark Corporation Has Income Per Books Before Tax of $1,500,000