The Loquat Corporation has book net income of $170,200 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. • Federal income tax expense $25,530 • Depreciation deducted on the books which is not deductible for 34,040 tax purposes • Deduction for 50 percent of meals expense which is not allowed 15,318 for tax purposes • Deduction for entertainment not allowed for tax purposes 6,808 • Tax-exempt interest income included in book income but not in 10,212 tax income Calculate Loquat Corporation's taxable income for the current year based on the information given.

The Loquat Corporation has book net income of $170,200 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. • Federal income tax expense $25,530 • Depreciation deducted on the books which is not deductible for 34,040 tax purposes • Deduction for 50 percent of meals expense which is not allowed 15,318 for tax purposes • Deduction for entertainment not allowed for tax purposes 6,808 • Tax-exempt interest income included in book income but not in 10,212 tax income Calculate Loquat Corporation's taxable income for the current year based on the information given.

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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