In 2020, AutoUSA Incorporated Reported $6,500,000 of Book Income, Including

question 3

Essay

In 2020, AutoUSA Incorporated reported $6,500,000 of book income, including $39,000 of interest income from tax-exempt bonds. AutoUSA reported $5,500,000 of regular business expenses. If it made $229,000 of estimated tax payments (prepayments) throughout the tax year, what is its tax due or tax refund when it files its return?

---

Definitions:

Product Offering

The complete set of goods and/or services that a company makes available to consumers.

Diversified

A strategy employed to reduce risk by allocating investments among various financial instruments, industries, or other categories.

Product Costing

The process of determining all costs incurred to bring a product to market, including materials, labor, and overhead.

Quality Assurance

A systematic process designed to determine whether a product or service meets specified quality standards.