Teal Corporation has taxable income of $320,000.The corporation had total meal travel and entertainment expenses of $50,000,charitable contributions of $10,000,and tax depreciation in excess of book depreciation of $45,000.Without regard to tax expense for financial statement purposes,what is the book net income of Teal?

Question

Quizplus · Accepted Answer

The book net income is calculated by adding back the excess tax depreciation to the taxable income and subtracting the non-deductible portion of meal, travel, and entertainment expenses. Charitable contributions are fully deductible for book purposes. Therefore, $320,000 + $45,000 - $25,000 (50% of $50,000) = $340,000.

Teal Corporation Has Taxable Income of $320,000