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

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