The Guava Corporation Has Book Net Income of $90,000 for the Current

question 53

Essay

The Guava Corporation has book net income of $90,000 for the current year. Included in this figure are the following items which are reported on the corporation's Schedule M-1, Reconciliation of Income (Loss) per Books with Income per Return.
1. Federal income tax expense $25,000
2. Depreciation deducted on books, not deductible for tax purposes 4,000
3. Deduction for 50 percent of meals and entertainment expense not allowed for tax purposes 3,000
4. Deduction for payroll tax penalties not allowed for tax purposes 2,000
5. Tax exempt interest income included in book income but not in tax return income 12,000
Based on the above information, calculate the Guava Corporation's taxable income for the year. Show your calculations.

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Definitions:

Physical Aspects

The tangible and environmental attributes or conditions of a workplace that can affect the well-being and performance of employees.

Adaptive Response

The ability of an organism or organization to modify or change its behavior or processes in response to changes in its environment.

Psychological Demands

The cognitive and emotional requirements or stressors associated with a job role.

Exhaustion

A state of extreme physical or mental fatigue, often resulting from stress or overwork.