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Gamma had pretax accounting income of $1,400 during 2011. Gamma used accelerated depreciation for tax purposes ($1,000) and straight-line depreciation for financial reporting purposes ($200). During 2011, Gamma accrued warranty expenses of $900 and paid cash to honor warranties of $500. Gamma's taxable income for 2011 would be:

A) $200.

B) $1,000.

C) $1,800.

D) $2,600.

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Accounting Basics, Accounting

Category:- Accounting Basics
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