The Guava Corporation has book net income of $90,000 for the current year. Included in this figure are the following items which are reported on the corporation's Schedule M-1, Reconciliation of Income (Loss) per Books with Income per Return 1. Federal income tax expense $25,000 2. Depreciation deducted on books, not deductible for tax purposes 4,000 3. Deduction for 50 percent of meals exp. not allowed for tax purposes (no calculation needed) 3,000 4. Deduction for payroll tax penalties not allowed for tax purposes 2,000 5. Tax exempt interest income included in book income but not in tax return income 12,000 Based on the above information, calculate the Guava Corporation's taxable income for the year. Show your calculations please so i can understand the steps?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Guava Corporation has book net income of $90,000 for the current year. Included in this figure are the following
items which are reported on the corporation's Schedule M-1, Reconciliation of Income (Loss) per Books with Income per
Return
1. Federal income tax expense $25,000
2. Depreciation deducted on books, not deductible for tax purposes 4,000
3. Deduction for 50 percent of meals exp. not allowed for tax purposes (no calculation needed) 3,000
4. Deduction for payroll tax penalties not allowed for tax purposes 2,000
5. Tax exempt interest income included in book income but not in tax return income 12,000
Based on the above information, calculate the Guava Corporation's taxable income for the year. Show your calculations please so i can understand the steps?

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