The following information relates to interstate trucking, Ask an Expert

Accounting

The following information relates to Interstate Trucking for its first year of operations (data in millions of dollars):

Pretax accounting income: $150
Pretax accounting income included:
Overweight fines (not deductible for tax purposes) 5
Depreciation expense 70
Depreciation on the tax return using MACRS: 110
The applicable tax rate is 40%. There are no other temporary ornontemporary differences.
Interstate's taxable income ($ in millions
Interstate experienced ($ inmillions) a:

1) Tax liability of$46.

2) Tax liability of$16.

3) Tax liability of$50.6.

4) Tax benefit of $10due to the NOL.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9797405

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