Budlow, Inc Determine Budlow's Taxable Income for the Current Year

question 122

Essay

Budlow, Inc., reported the following results for the current year. $$\begin{array} { l r } \text { Book income (before tax) } & \$ 500,000 \\\text { Tax depreciation in excess of book } & 75,000 \\\text { Warranty expense, not deductible currently } & 17,500 \\\text { Municipal bond interest income } & 10,000\end{array}$$ Determine Budlow's taxable income for the current year.Identify any temporary or permanent book-tax differences.

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