Woody Corp. had taxable income of $8,000 in the current year. The amount of MACRS depreciation was $3,000 while the amount of depreciation reported in the income statement was $1,000. Assuming no other differences between tax and accounting income, Woody's pretax accounting income was:

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The difference between MACRS depreciation and accounting depreciation is $2,000 ($3,000 - $1,000). Adding this difference to the taxable income of $8,000 gives a pretax accounting income of $10,000 ($8,000 + $2,000).