cardinal corporation reported pretax book income of $3,000,000 bad debt $200,000, depreciation book exceed tax $100,000, non deductible entertainment expense $50,000, fines 40,000. calculate income tax expense, deferred tax, taxable income, book equivalent, effective tax rate

cardinal corporation reported pretax book income of $3,000,000 bad debt $200,000, depreciation book exceed tax $100,000, non deductible entertainment expense $50,000, fines 40,000. calculate income tax expense, deferred tax, taxable income, book equivalent, effective tax rate

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

cardinal corporation reported pretax book income of $3,000,000 bad debt $200,000, depreciation book exceed tax $100,000, non deductible entertainment expense $50,000, fines 40,000.

calculate income tax expense, deferred tax, taxable income, book equivalent, effective tax rate

Definition Definition Receivable amount that a company is owed, but did not receive, and which may not be receivable in future.

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