In 2020, AutoUSA Incorporated Reported $4,900,000 of Book Income, Including

question 80

Essay

In 2020, AutoUSA Incorporated reported $4,900,000 of book income, including $23,000 of interest income from tax-exempt bonds. AutoUSA reported $3,900,000 of regular business expenses. If it made $213,000 of estimated tax payments (prepayments)throughout the tax year, what is its tax due or tax refund when it files its return?

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Definitions:

Market Basket

A set of goods and services that are typically consumed by a household or used to track the cost of living or inflation.

Perfect Substitutes

Goods or services that can be used in place of one another with no loss of utility by the consumer.

Perfect Complements

Goods that are always used together in fixed proportions, such that the utility derived from consuming one good increases the utility of consuming the other.

Orange Juice

A liquid extract of the orange tree fruit, consumed as a beverage for its taste and nutritional benefits, particularly its high vitamin C content.