Budlow, Inc., reported the following results for the current year. $$\begin{array} { l r }
\text { Book income (before tax) } & \$ 500,000 \
\text { Tax depreciation in excess of book } & 75,000 \
\text { Warranty expense, not deductible currently } & 17,500 \
\text { Municipal bond interest income } & 10,000
\end{array}$$ Determine Budlow's taxable income for the current year. Identify any temporary or permanent book-tax differences.

Question

Budlow, Inc., reported the following results for the current year. $$\begin{array} { l r } 
\text { Book income (before tax) } & \$ 500,000 \
\text { Tax depreciation in excess of book } & 75,000 \
\text { Warranty expense, not deductible currently } & 17,500 \
\text { Municipal bond interest income } & 10,000
\end{array}$$ Determine Budlow's taxable income for the current year. Identify any temporary or permanent book-tax differences.

Quizplus · Accepted Answer

The Answer of Budlow, Inc., reported the following results for the current year. $$\begin{array} { l r } 
\text { Book income (before tax) } & \$ 500,000 \
\text { Tax depreciation in excess of book } & 75,000 \
\text { Warranty expense, not deductible currently } & 17,500 \
\text { Municipal bond interest income } & 10,000
\end{array}$$ Determine Budlow's taxable income for the current year. Identify any temporary or permanent book-tax differences.

Budlow, Inc Determine Budlow's Taxable Income for the Current Year