Mustard Company had depreciation for tax purposes in 2021 of $30,000 but for book purposes...
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Accounting
| Mustard Company had depreciation for tax purposes in 2021 of $30,000 but for book purposes only $20,000. | |||||||||
| Also in 2021, Mustard recognized a loss from a contingency amounting to $20,000 which the Internal Revenue | |||||||||
| Service does not allow until it actually occurs which is likely in 2022. Mustard also recognized $14,000 of interest | |||||||||
| income from its investments in tax exempt bonds which the Internal Reveunue Service will | |||||||||
| never regard as income. | |||||||||
| Taxes paid in 2021 were $100,000 with a tax rate of 20%. | |||||||||
| Determine the financial accounting (book) income for 2021 | |||||||||
B.
| Determine the tax expense for 2021. |
C.
| Determine Mustard's effective tax rate for 2021 |
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