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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

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Solution Summary

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

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*** 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 ...

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