Sunshine Company has book income of $250,000.It also has tax depreciation in excess of book depreciation of $30,000 and $10,000 of interest on tax-exempt bonds.Without regard to tax expense,what is Sunshine's taxable income?

Question

Quizplus · Accepted Answer

To calculate taxable income, subtract the tax-exempt interest ($10,000) from book income and add the excess tax depreciation ($30,000) to book income: $250,000 - $10,000 + $30,000 = $270,000.

Sunshine Company Has Book Income of $250,000