Problem - The following differences between financial and taxable income were reported by Dider Corporation for the current year:
(a) Excess of tax depreciation over book depreciation .... $60,000
(b) Interest revenue on municipal bonds .................. 9,000
(c) Excess of estimated warranty expense over actual expenditures ...................... 54,000
(d) Unearned rent received ............................... 12,000
(e) Fines paid ........................................... 30,000
(f) Excess of income reported under percentage-of-completion accounting for financial reporting over completed-contract accounting used for tax reporting ............. 45,000
(g) Interest on indebtedness incurred to purchase tax-exempt securities .................................... 3,000
(h) Unrealized losses on marketable securities recognized for financial reporting ..............................18,000
Assume that Dider Corporation had pretax accounting income [before considering items (a) through (h)] of $900,000 for the current year. Compute the taxable income for the current year.