Junk, Inc., a calendar year, accrual basis corporation, reported $479,000 net income after tax on...
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Junk, Inc., a calendar year, accrual basis corporation, reported $479,000 net income after tax on its 2021 financial statements prepared in accordance with GAAP. The corporations financial records reveal the following information:
Junk earned $10,700 on an investment in tax-exempt municipal bonds.
Junks depreciation expense per books was $44,200, and its MACRS depreciation deduction was $31,000.
Junk recorded bad debts expense of $3,700 on its books using the allowance method; it wrote of $4,400 of bad debts.
On July 1, Junk paid a $6,000 fine to the municipal government for a violation of a local zoning ordinance.
Junk recorded $5,000 of business meals and entertainment expense for book purposes.
Complete the schedule below showing the necessary book to tax adjustments needed to calculate Junks taxable income. YOU ABSOLUTELY MUST SHOW A + OR A - AS WELL AS THE RECONCILING ITEM FOR EACH ADJUSTMENT!!!
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