Amelia,Inc. ,is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year.Assume a 34% corporate tax rate and no valuation allowance.

Amelia Inc.'s gross deferred tax assets and liabilities at the beginning of Amelia's year are listed below.

Amelia Inc.'s book income before tax is $25,200.Amelia has two permanent differences between book and taxable income.It earned $1,000 in tax exempt municipal bond interest and had $1,840 in nondeductible meals and entertainment expense.Provide the income tax footnote rate reconciliation for Amelia.

Question

Amelia,Inc. ,is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year.Assume a 34% corporate tax rate and no valuation allowance.

Amelia Inc.'s gross deferred tax assets and liabilities at the beginning of Amelia's year are listed below.

Amelia Inc.'s book income before tax is $25,200.Amelia has two permanent differences between book and taxable income.It earned $1,000 in tax exempt municipal bond interest and had $1,840 in nondeductible meals and entertainment expense.Provide the income tax footnote rate reconciliation for Amelia.

Quizplus · Accepted Answer

The Answer of Amelia,Inc. ,is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year.Assume a 34% corporate tax rate and no valuation allowance.

Amelia Inc.'s gross deferred tax assets and liabilities at the beginning of Amelia's year are listed below.

Amelia Inc.'s book income before tax is $25,200.Amelia has two permanent differences between book and taxable income.It earned $1,000 in tax exempt municipal bond interest and had $1,840 in nondeductible meals and entertainment expense.Provide the income tax footnote rate reconciliation for Amelia.