Explore BrainMass

Explore BrainMass

    Reconciling Book To Taxable Income

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Problem:The Book used is:
    Pope, T. & Anderson, K. & Kramer, J. (2007). Federal taxation comprehensive. Upper Saddle River, NJ: Prentice Hall.

    Reconciling Book Income and Taxable Income. Zero Corporation reports the following results for the current year:

    Net income per books (after taxes) $33,000
    Federal income tax per books 12,000
    Tax-exempt interest income 6,000
    Interest on loan to purchase tax-exempt bonds 8,000
    MACRS depreciation exceeding book depreciation 3,000
    Net capital loss 5,000
    Insurance premium on life of corporate officer where Zero is the beneficiary 10,000
    Excess charitable contributions carried over to next year 2,500
    U.S. production activities deduction 1,000

    Prepare a reconciliation of Zero's taxable income before special deductions with its book
    income.

    © BrainMass Inc. brainmass.com June 3, 2020, 10:49 pm ad1c9bdddf
    https://brainmass.com/business/accounting/reconciling-book-to-taxable-income-251044

    Attachments

    Solution Preview

    C3-59
    Reconciling Book Income and Taxable Income. Zero Corporation reports the following results for the current year:

    Net income per books (after taxes) $33,000
    Federal income tax per books 12,000
    Tax-exempt interest income 6,000
    Interest on loan to purchase tax-exempt bonds 8,000
    MACRS depreciation exceeding book depreciation 3,000
    Net capital loss 5,000
    Insurance premium on life of corporate officer where Zero is the beneficiary ...

    Solution Summary

    Using a Word document, this solution demonstrates the process to reconcile book income to taxable income.

    $2.19

    ADVERTISEMENT