Question

Question 2 View Policies Current Attempt in Progress Novak Company reports pretax financial income of $72,600 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $17,200. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $20,300, 3. Fines for pollution appear as an expense of $9,900 on the income statement. Novak's tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. Compute taxable income and income taxes payable for 2020. Taxable income $ Income taxes payable $ e Textbook and Media List of Accounts Attempts: 0 of 3 used Save for Later Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above.

Answer 1

A Amount $ 72,600 $-17,200 $ 20,300 $ 9,900 Particulars 1 2 Pretax financial income 3 Less: Excess depreciation 4 Add: Rent collcetd greater than rebt recognized Add: Non deductible pollution fines 6 Taxable income for 2020 $ 85,600 $ 25,680 7 Income taxes payable for 2020

В Amount Particulars 1 72600 2 Pretax financial income 3 Less: Excess depreciation -17200 20300 9900 4 Add: Rent collcetd greater than rebt recognized 5 Add: Non deductible pollution fines 6 Taxable income for 2020 SUM(B2:B5) +B6*30% 7 Income taxes payable for 2020