Franton Co., a calendar year, accrual basis corporation, reported $2,076,000 net income after tax on its current year financial statements prepared in accordance with GAAP. The corporation's financial records reveal the following information.Federal tax expense per books was $660,000.Franton received $22,400 of dividends from its

Question

Franton Co., a calendar year, accrual basis corporation, reported $2,076,000 net income after tax on its current year financial statements prepared in accordance with GAAP. The corporation's financial records reveal the following information.Federal tax expense per books was $660,000.Franton received $22,400 of dividends from its < 1% investment in Microsoft and General Motors stock.Bad debt expense was $12,900, and write-offs of uncollectible accounts receivable totaled $16,300.Book depreciation was $110,890, and MACRS depreciation was $94,700.Franton paid a $50,000 fine to the City of Albany for illegal trash dumping.Compute Franton's taxable income and regular tax liability.

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The Answer of Franton Co., a calendar year, accrual basis corporation, reported $2,076,000 net income after tax on its current year financial statements prepared in accordance with GAAP. The corporation's financial records reveal the following information.Federal tax expense per books was $660,000.Franton received $22,400 of dividends from its < 1% investment in Microsoft and General Motors stock.Bad debt expense was $12,900, and write-offs of uncollectible accounts receivable totaled $16,300.Book depreciation was $110,890, and MACRS depreciation was $94,700.Franton paid a $50,000 fine to the City of Albany for illegal trash dumping.Compute Franton's taxable income and regular tax liability.