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

Taxable income is calculated by adjusting book income for tax purposes. Start with book income of $250,000, subtract the $30,000 excess tax depreciation, and subtract the $10,000 tax-exempt interest. This results in taxable income of $210,000.

Sunshine Company Has Book Income of $250,000