The accouriting records of Culver Inc. show the following data for its first year of operations
Life insurance expense on officers was $
Equipment was acquired in early January for $ Straightline depreciation over a year life is used, with no salvage value. For tax purposes, Culver used a rate to calculate depreciation.
Interest revenue on State of New York bonds totaled $
Product warranties were estimated to be $ in Actual repair and labor costs related to the warranties in were $ The remainder is estimated to be paid evenly in and
Gross profit on an accrual basis was $ For tax purposes, $ was recorded on the installmentsales method.
Fines incurred for pollution violations were $
Pretax financial income was $ The tax rate is
Schedule of Pretax Financial Income and Taxable Income for
Pretax financial income $
Permanent differences
$
Temporary differences
$
Taxable income
$
