Amelia, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year.Assume a 34% corporate tax rate and no valuation allowance. Assets Cash Accounts Receivable Buildings Acc. Depreciation Furniture & Fixtures Acc. Depreciation Total Assets Liabilities Accrued Vacation Pay Note Payable Total Liabilities Stockholders’ Equity Paid in Capital Retained Earnings Total Liabilities and Tax Debit/(Credit) $1,20020,0001,200,000(600,000)160,000(84,000)$697,200$−0−(464,000)$464,000)($4,000)(229,200)($697.200) Book Debit/(Credit) $1,20020,0001,200,000(320,000)160,000(60,000)$1.001.200($108,000)($464,000)($572,000)($4,000)(425,200)($1.001.200)
Amelia, Inc.’s, gross deferred tax assets and liabilities at the beginning of Amelia’s year are listed below.
Accrued Vacation Pay Subtotal Applicable Tax Rate Gross Deferred Tax Asset Building - Acc. Depreciation Furniture & fixtures - Acc. Depreciation Subtotal Applicable tax rate Gross deferred tax liability Beginning of Year $84,000$84,000×34%$28,560($244,000)(12,800)($256,800)×34%($87.312) Amelia, Inc.'s, book income before tax is $25,200.Amelia records two permanent book-tax differences.It earned $1,000 in tax-exempt municipal bond interest and $1,840 in nondeductible meals and entertainment expense.Provide the income tax footnote rate reconciliation for Amelia.
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Contingency Employment
Employment arrangements that are temporary or project-based, often with no guarantee of continued work.
Austrian National
A term denoting a person who holds citizenship of Austria.
Quality Control Engineer
a professional who ensures that products meet required standards of quality through the design and implementation of testing procedures.
U.S. Laws
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