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Reconciling Book To Taxable Income

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


Solution Summary

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