Southlawn Inc.'s taxable income is computed as follows. Using a 34% rate, compute Southlawn's tax expense per books and tax payable.

Question

Southlawn Inc.'s taxable income is computed as follows.  Using a 34% rate, compute Southlawn's tax expense per books and tax payable.

Quizplus · Accepted Answer

To calculate the tax expense per books, multiply the taxable income by the tax rate: $1,893,600 x 34% = $643,824. To calculate the tax payable, use the same tax rate to compute the tax liability: $1,699,900 x 34% = $579,564. Therefore, the correct answer is A.