Amelia,Inc.,is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year.Assume a 34% corporate tax rate and no valuation allowance.
Amelia,Inc.'s,gross deferred tax assets and liabilities at the beginning of Amelia's year are listed below.
Amelia,Inc.'s,book income before tax is $25,200.Amelia records two permanent book-tax differences.It earned $1,000 in tax-exempt municipal bond interest and $1,840 in nondeductible meals and entertainment expense.Provide the income tax footnote rate reconciliation for Amelia.

Question

Amelia,Inc.,is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year.Assume a 34% corporate tax rate and no valuation allowance.
  Amelia,Inc.'s,gross deferred tax assets and liabilities at the beginning of Amelia's year are listed below.
  Amelia,Inc.'s,book income before tax is $25,200.Amelia records two permanent book-tax differences.It earned $1,000 in tax-exempt municipal bond interest and $1,840 in nondeductible meals and entertainment expense.Provide the income tax footnote rate reconciliation for Amelia.

Quizplus · Accepted Answer

The Answer of Amelia,Inc.,is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year.Assume a 34% corporate tax rate and no valuation allowance.
  Amelia,Inc.'s,gross deferred tax assets and liabilities at the beginning of Amelia's year are listed below.
  Amelia,Inc.'s,book income before tax is $25,200.Amelia records two permanent book-tax differences.It earned $1,000 in tax-exempt municipal bond interest and $1,840 in nondeductible meals and entertainment expense.Provide the income tax footnote rate reconciliation for Amelia.