The following information relates to interstate trucking, Ask an Expert

Accounting

The following information relates to Interstate Trucking for itsfirst year of operations (data in millions ofdollars):

Pretax accounting income: $150
Pretax accounting income included:
Overweight fines (not deductible for tax purposes) 5
Depreciation expense 70
Depreciation on the tax return using MACRS: 110

The applicable tax rate is 40%. There are no other temporary ornontemporary differences.

Inter state's taxable income ($ in millions) is:

1) $40.

2) $25

3) $110.

4) $115.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9797402

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