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    Calculation of Net Income Per Books versus Tax Return

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    Future Inc reported the following results for the year

    Net Income per sales $110,000

    Federal Income Taxes $36,170

    Life Insurance Proceeds on key employee $15,000

    Tax Exempt interest income $13,000

    Net Capital Loss $25,000

    What is taxable income for the year?

    a.$123,170
    b.$143,170
    c.$72,000
    d.$135,000
    e.$107,000

    © BrainMass Inc. brainmass.com June 4, 2020, 12:42 am ad1c9bdddf
    https://brainmass.com/business/accounting/calculation-net-income-per-books-versus-tax-return-354218

    Solution Preview

    *** Caution the use of the term Net Income per Sales has been interpreted to mean Net Income Per Books and the following is the correct adjusting process to arrive at Taxable ...

    Solution Summary

    This solution calculates the net income per tax return from the net income per books.

    $2.19

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